Ether demonstrates resilience amidst market fluctuations, showing a 5% increase following the 'Monday Trap'. However, as leverage increases on Binance, market risks also escalate.
Ether Market and 'Monday Trap'
Ether is recovering from the 'Monday Trap', where liquidation risk for longs peaks at the start of the week. Ether rallied by 5% on Tuesday, while Bitcoin only increased by 1%.
Data shows that Monday often records maximum long liquidations, leading to market fluctuations.
Leverage Dynamics and Stablecoins
Despite the recovery, the leverage ratio on Binance has reached record levels, indicating potential market overheating. Ether has seen a $1.65 billion inflow of stablecoins, signaling fresh liquidity entering.
Investors are also withdrawing Ether from exchanges, reducing sell pressure and reinforcing long-term bullish positions.
Path to $5,000: What Ether Needs
Ether is trading at $4,579 and must reclaim $4,700 to maintain bullish momentum. Sustaining below $4,700 could indicate ongoing consolidation, with a drop below $4,350 possibly leading to a deeper correction.
The current situation in the Ether market suggests growth; however, excessive leverage and the support level at $4,700 remain critical factors for determining the next steps.
