Ethereum Price Stalls Below $3,500 as Leverage Ratios Rise

Ethereum has traded between $3,200 and $3,500 for months, stabilizing. Even if the market is rising, ETH is still stuck in this area.
After a protracted drop from its late 2021 peak of $4,800, it has stagnated. The cryptocurrency has fallen 32% from its high.
Even the new pro-crypto government and regulatory clarification have failed to move Ethereum above its present resistance levels.
ShayanBTC, a CryptoQuant QuickTake contributor, has identified a key statistic that might indicate an ETH price shift under present market circumstances.
High Ethereum Leverage Ratios and Implications
In a CryptoQuant QuickTake research, Shayan found that Ethereum's Estimated Leverage Ratio—a measure of futures market participants' average leverage—has been rising significantly.
Even as Ethereum's price consolidates, Shayan reports a spike in traders' risk-taking. Leverage at high levels suggests a large price swing, but its direction is unknown. Shayan stated:
A large and impulsive price move is likely when this range breaks due to strong leverage.
Shayan said that more traders using leverage makes the market more volatile. These leveraged positions might create a fast and severe price change if liquidated via a short or long squeeze.
The consolidation around $3,200–$3,500 has raised Ethereum's future prospects. Analyst for CryptoQuant posted:
Given market mood, a positive breakthrough seems likely. However, traders should continuously watch the leverage ratio since sudden changes might cause volatility and liquidations.
Eth Market Performance
ETH is at $3,282, down 0.1% in 24 hours. ETH's daily trade volume has been strong this week despite its poor performance.
Ethereum's daily trading volume, which was below $20 billion last Wednesday, is now over $24 billion. This contrasts with ETH's market performance during the same time.
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