The open interest in Ethereum futures has surpassed $20 billion, setting a new all-time high and underscoring a sharp increase in speculative activity. The rise in short positions indicates that an increasing number of traders are betting on a decline in Ethereum’s price.
At the same time, the estimated leverage ratio (ELR) has peaked, reflecting a greater reliance on borrowed funds. This heightened leverage amplifies the risk of rapid liquidations, posing significant volatility for the market.
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