Ethereum leverage nears record highs: Are ETH traders on edge?

Ethereum

Ethereum leverage nears record highs: Are ETH traders on edge？

Its near record highs (0.6–0.7), meaning traders are heavily leveraged and the market could swing sharply in either direction.

Big holders have bought back around 218,000 ETH in a week.

Ethereum [ETH] traders are ramping up leverage on Binance, pushing the exchanges leverage ratio close to record highs.

Big money is showing confidence in Ethereum, but that also means bigger risks. With bullish bets rising, Will ETH break higher or get hit by a wave of sell-offs？

High leverage builds pressure

Ethereums Estimated Leverage Ratio (ELR) on Binance has climbed close to record highs, meaning traders are taking on heavy risk.

The ratio, which compares open futures positions to exchange reserves, was between 0.6 and 0.7 at press time. These are levels that often come before high volatility.

Source: CryptoQuant

At press time, ETH traded near $3,900, so the market is at a tipping point. A drop below $3,800 could trigger long liquidations, while a breakout above $4,000 may fuel a short squeeze.

With leverage this high, even small price swings could set off large-scale moves in either direction.

Whales start buying back

With this high-leverage setup, Ethereums large holders are starting to rebuild their positions.

Wallets holding between 100 and 10,000 ETH have accumulated over 218,000 ETH in the past week, according to Santiment data. This comes after dumping around 1.36 million ETH between the 5th and 16th of October.

Source: Santiment

Confidence is high among whales and sharks, so smart money could be preparing for a potential upside move. Their buying could provide much-needed support to ETHs price as leverage-driven volatility intensifies.

ETH steadies, but momentum remains weak

At press time, Ethereum traded around $3,935, struggling to break above $4K resistance.

Source: TradingView

The RSI showed neutral momentum, and that buyers hadnt regained full control. The MACD lines were still below zero, but a bullish crossover is possible if volume picks up.

Meanwhile, price action stayed between the 20-day EMA ($3,964) and 50-day EMA ($4,126), showing indecision.

Overall, ETH looks like its waiting for a strong push; either a breakout above $4,000 or a dip below $3,800 to set the next clear direction.