Ethereum New Liquidity Cycle? This Binance Indicator Says Yes

Ethereum

Ethereum New Liquidity Cycle？ This Binance Indicator Says Yes

According to CryptoQuant, Ethereums estimated leverage ratio on Binance might be hinting at a liquidity shift. The Ethereum estimated leverage ratio on Binance has gradually recovered, reaching a value of 0.69 in mid-March.

Ethereums ELR Signals a New Liquidity Cycle

“Ethereums estimated leverage ratio on Binance has gradually recovered, reaching a value of 0.69 in mid-March. The new ELR growth trajectory signals fresh optimism towards digital assets.” – By @oinonen_t pic.twitter.com/KgzUAi6har

— CryptoQuant.com (@cryptoquant_com) March 17, 2026

The Oct. 10 sell-off on the market saw a leverage reset, which caused the Ethereum estimated leverage ratio (ELR) on Binance to fall from 0.56 to 0.41, marking a 27% decline. This sell-off marked the largest 24-hour liquidation event in crypto history, with over $19 billion in leveraged positions liquidated within 24 hours.

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Since then, Ethereums estimated leverage ratio on Binance has seen a recovery and has rebounded, reaching a value of 0.69 as of this writing. This shift signals fresh optimism on the market, with investors seeking additional leverage.

CryptoQuants Ethereum estimated leverage ratio (ELR) is a market indicator that measures the average leverage used by traders on the Ethereum derivatives market.

Ethereum price

According to Ali charts, the $2,152 resistance has been cleared, and the trend has officially shifted bullish. The next targets expected for ETH are at $2,337 and $2,538.

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Veteran Trader Peter Brandt highlights a “small bottom” on Ethereums daily chart located “in an area of longer term historical support.”

Ethereum rose for eight days at a stretch from March 9 to 17, reaching $2,386 on Monday before slightly retreating. If the rise continues, ETH might rise to $2,600 and then to $3,450. Such price action suggests that Ethereum may have bottomed out at $1,747.

The $2,000 level remains one to watch out for on the downside. A close below this level might signal that the bears dominate at higher levels and the price may fall to $1,916.

The Fed meeting that begins today and concludes Wednesday remains the focus for traders. CME FedWatch still prices a 95% probability of Fed rates being held at 3.5% to 3.75%, so the decision itself is a non-event.