Record ETH Leverage on Binance Signals Explosive Price Risk
December 19 marked a new high for the Ethereum (ETH) derivatives market on Binance. That day saw the highest level of leverage associated with ETH positions ever recorded. The move demonstrates traders’ strong reliance on borrowed positions. Ethereum’s price is still brittle, though, which increases the possibility of both substantial increases and abrupt declines.
Record Leverage Meets Strong Buying as ETH Risk Appetite Soars
Ethereum’s Estimated Leverage Ratio (ELR) on Binance was 0.611, according to on-chain analytics account CryptoOnchain. This is the highest recorded reading to date. In relation to exchange reserves, the measure shows how much borrowed capital dealers are utilizing. Greater risk across all open positions is indicated by higher values. Simultaneously, the ETH Taker Buy Sell Ratio surged to 1.13, which was last observed in September 2023. According to CryptoOnchain, a ratio greater than one indicates that market buyers are outnumbering sellers. This demonstrates that traders are prepared to take long bets at the going rate.
The convergence of these two metrics sends a clear message: traders are not only highly optimistic about ETH’s price action (strong buying pressure) but are also willing to take on massive risks to back this sentiment (historic leverage),
the market watcher
ETH Price Holds Support While Traders Brace for Bigger Swings
Some technical traders shared that cautious optimism. When ETH touched the $2,700 to $2,800 support area, it bounced, according to a post by analyst Ted Pillows on X. A breakdown may push prices back to about $2,500, he added, but holding that zone keeps a move toward $3,100–$3,200 in play. But CryptoOnchain warned that there are drawbacks to the existing configuration. The accumulation of leveraged positions at record highs renders the market susceptible to severe volatility, even though this can provide the momentum required to push ETH above important resistance levels. The chance of a sustained squeeze might rise sharply with even a minor decline.
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