The Ethereum market is undergoing significant changes, including recent inflows and outflows of funds, as well as risks associated with elevated leverage. This article examines the current trends and their impact on the future prospects of the cryptocurrency.
Ethereum ETF Inflows and Institutional Buying
Last week, Ethereum ETFs recorded a net outflow of 105,000 ETH, ending a strong streak of inflows. However, this Monday saw a return of 16,900 ETH, indicating ongoing institutional interest. BlackRock added $314.9 million worth of Ethereum during the recent dip, while Bitmine Immersion Tech increased its holdings to 1.7 million ETH valued at $7.54 billion.
Risks Due to Increased Leverage on Binance
Binance's Estimated Leverage Ratio (ELR) has reached 0.53, indicating high margin usage among traders. This elevated level of leverage increases the risk of sharp liquidations if ETH prices decline unexpectedly. Open interest in Ethereum derivatives on Binance currently stands at $10.6 billion, reflecting growing participation in leveraged products.
Price Support and Its Market Implications
Ethereum recently reached a new all-time high of $4,957 before pulling back to $4,400. Prices remain above the $3,900–$4,000 support zone, which is now a critical demand area. If this zone holds, Ethereum could resume its upward trend towards medium-term targets between $6,000 and $8,000. However, any break below the $3,900 mark could lead to a deeper market correction.
Current events in the Ethereum market indicate mixed prospects. On one hand, institutional investments support a positive view; on the other hand, the high level of leverage creates risks. Investors remain cautious about how the market will handle these challenges.
