Key takeaways

Why is Ethereum’s leverage ratio important right now?

It’s near record highs (0.6–0.7), meaning traders are heavily leveraged and the market could swing sharply in either direction.

What are Ethereum whales doing?

Big holders have bought back around 218,000 ETH in a week.

Ethereum [ETH] traders are ramping up leverage on Binance, pushing the exchange’s leverage ratio close to record highs.

Big money is showing confidence in Ethereum, but that also means bigger risks. With bullish bets rising, Will ETH break higher or get hit by a wave of sell-offs?

High leverage builds pressure

Ethereum’s Estimated Leverage Ratio (ELR) on Binance has climbed close to record highs, meaning traders are taking on heavy risk.

The ratio, which compares open futures positions to exchange reserves, was between 0.6 and 0.7 at press time. These are levels that often come before high volatility.

At press time, ETH traded near $3,900, so the market is at a tipping point. A drop below $3,800 could trigger long liquidations, while a breakout above $4,000 may fuel a short squeeze.

With leverage this high, even small price swings could set off large-scale moves in either direction.

Whales start buying back

With this high-leverage setup, Ethereum’s large holders are starting to rebuild their positions.

Wallets holding between 100 and 10,000 ETH have accumulated over 218,000 ETH in the past week, according to Santiment data. This comes after dumping around 1.36 million ETH between the 5th and 16th of October.