Analytics Firm Warns of Leverage Build-Up in Ethereum Amid Rallies, Says Momentum Awakening for One Solana Challenger
A market intelligence firm is warning traders that leverage is building up in Ethereum (ETH), creating volatility risk for bulls. In a new thread on the social media platform X, the crypto analytics platform Altcoin Vector says that leverage risk is building within the second-largest digital asset by market cap despite ETH’s most recent price rise being backed by the spot market and exchange-traded funds (ETFs). “ETH Futures OI (open interest) just hit a new ATH (all-time high) – double since May – and price is climbing with it. Unlike late 2024, this rise is backed by ETF inflows and spot momentum, but… OI at historic levels is a double-edged sword. Conviction is back, but leverage risk is building.” Source: Altcoin Vector/X Ethereum is trading for $3,771 at time of writing, a fractional increase on the day. Moving on to Solana (SOL) challenger Sui (SUI), Altcoin Vector says that the layer-1 chain looks like it’s picking up momentum that...