- Estimated Leverage Ratio Reaches 0.42, Highlighting Increased Speculative Trading Without Extreme Market Risk.
- Open Interest in Ethereum Hits Five-Month High at $16.61 Billion, Reflecting Strong Speculative Interest
Ethereum’s value has soared, reaching over $2,900—a high not seen in the past three months.
This big uptick in Ethereum’s price is closely tied to increased speculative activity, as observed through the metrics of estimated leverage ratios and funding rates in the derivatives market.
Within a span of just 48 hours, Ethereum has seen a sharp 20% increase in its price, peaking at $2,950 before stabilizing around $2,922. This level marks its highest price point since this quarter began, suggesting a strengthening of investor confidence in Ethereum.
Analysts by ETHNews have noted a parallel increase in the estimated leverage ratio, which recently hit 0.42. This indicates that 42% of the market’s open positions are being financed through borrowed funds, elevating the potential volatility in Ethereum’s price.
Despite this, the leverage ratio remains below the threshold that typically signals overly speculative market conditions, implying that Ethereum might sustain its upward trajectory without immediate risk of a significant pullback.
Further markets show a notable rise in the funding rates for Ethereum derivatives. This rise signals that traders are predominantly taking long positions, indicative of a bullish outlook among market participants. They are also willing to pay higher premiums to maintain these positions, reinforcing the positive market sentiment towards Ethereum.
Concurrently, the total open interest in Ethereum derivatives has surged to $16.61 billion, reflecting an increase of over $3 billion in just two days. This metric underscores the heightened market activity and the growing speculative interest in Ethereum.
Ethereum is also testing technical resistances
It currently approaches the 200-day Simple Moving Average (SMA), which stands at $2,955. Overcoming this barrier could potentially trigger a rally, possibly reaching up to $3,260, aligning with the 1.618 Fibonacci extension level.
In related financial trends, Ethereum has witnessed a significant influx of capital into its ETFs, particularly on November 7th, when investments peaked at $79.74 million—the highest since August. This surge in ETF activity indicates robust institutional interest which may further bolster Ethereum’s market position.
Ethereum (ETH) is currently trading at $2,963.6, with a daily increase of 2.32%. Over the past week, it has shown a strong gain of 17.85%, and for the month, it’s up by 21.47%, reflecting a robust bullish trend.
The 24-hour trading volume is approximately $32.80 billion, indicating significant market interest. Key resistance is near the psychological level of $3,000, while support is around $2,800.
Technical indicators suggest continued bullish momentum, with potential for further gains if the price breaks and holds above $3,000. However, caution is advised near resistance levels as short-term corrections could occur.
