Dec 19, 2025
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Ethereum Leverage Hits Record High Amid Rising Buying Pressure
Ethereum Market Overview:
- Ethereum's price struggles below $3,000 with repeated rejections.
- Market sentiment remains cautious amid low trading activity and short-lived relief rallies.
Derivatives Market Insights:
- CryptoQuant report indicates Ethereum's derivatives market on Binance is at record levels.
- Estimated Leverage Ratio (ELR) for ETH reached an all-time high of 0.611, indicating high leveraged positions.
- Taker Buy Sell Ratio spiked to 1.13, showing aggressive buying behavior.
Implications and Risks:
- High leverage suggests optimism but increases risk of volatility and potential long squeezes.
- Price pullbacks could lead to cascading liquidations due to elevated leverage.
Price Action and Technical Analysis:
- ETH trades around $2,950, struggling below key resistance levels.
- ETH remains below both the 100-day and 200-day moving averages.
- Failure to reclaim $3,200–$3,300 zone highlights ongoing downtrend.
- Immediate support lies between $2,800–$2,750; a break could lead to further declines toward $2,500.
- Reclaiming $3,200 and holding above moving averages with increased volume is essential for a bullish reversal.
