Ethereum leverage crashes 91%, yet ETH price holds firm - Heres why
As Ethereum [ETH] advanced toward $2500, traders went all-in, adding massive amounts of leverage on both Binance and Bybit. The combined Open Interest (OI) on these two exchanges grew by $1.12 billion over the seven days ending on the 22nd of August, after traders began to chase Ethereums breakout. Recently, that momentum has dramatically fallen off. As of the 30th of August, the leverage collapsed 90.9% to just $102 million. Binance fell from $843 million to $94 million, while Bybit plunged from $277 million to $8 million. Source: CryptoQuant However, ETH is still trading near $2500, even though derivatives are being added by much smaller margins. In other words, this means that the rally is now relying less on rapid expansion of derivatives in order to continue supporting the price. Discover more FINANCE News Currencies & Foreign Exchange Ultimately, if Ethereum holds $2500 while leverage decreases, then this would likely indicate a rally based on growing demand. With leveraged trading cooling, Ethereums support is increasingly coming from spot ETFs. The volume of ETH being bought by institutions through spot ETFs has grown with each session since the 15th of August. Since then, U.S.-based Ethereum ETFs have had approximately $1.5 billion in investment over 10 days. Source: Farside Over this same period BlackRocks ETHA









