Altcoin Vector has issued a warning for cryptocurrency investors about the risks arising from the growing use of leverage in Ethereum, which may lead to significant price fluctuations.
Ethereum Leverage Reaches Record Heights
Recent data reveals that open interest in Ethereum futures has reached unprecedented levels, having doubled since May. This escalation in open positions has concurrently driven price increases. Analysts attribute this rise to support from spot demand and exchange-traded funds. Altcoin Vector notes that the record-breaking open interest in Ethereum futures accompanied by rising prices is a double-edged sword. While investor confidence is resurging, the leverage risk is increasingly prominent.
Promising Signs from Sui
The analysis also shared promising momentum signs for Sui, a layer-1 network emerging as an alternative to Solana. Data indicates Sui witnessed a 10% increase over the past 24 hours, drawing attention with substantial trading volumes. Altcoin Vector commented that Ethereum is leading the pack, even outperforming Bitcoin. Yet, this rotation phase benefits those outpacing others as well as laggards.
Healthy Correction in Bitcoin
Altcoin Vector views the recent dip in Bitcoin, the most valuable digital asset, as non-threatening. Analysts suggest this decline doesn’t disrupt the price structure, with the primary bullish momentum persisting firmly.
The increasing use of leverage in markets is being closely monitored by investors, as it may spur major price movements in the short term. With Ethereum futures hitting record highs, there’s an emerging vulnerability for quick directional changes and liquidations.
