Over the weekend, Ethereum surpassed its all-time high, reaching nearly $4950. However, high trading risks on Binance raise concerns among traders.
Ethereum Price Situation
Ethereum rose to a new record of nearly $4950 on Sunday, followed by a slight pullback. This event has been significant for the altcoin, which has greatly strengthened its position in the market.
Traders' Positions and Risks
According to statistics, the Estimated Leverage Ratio (ELR) on Binance has reached record levels, indicating high market risk. ELR measures how heavily leveraged traders are positioned. Open interest on Binance hit a record $12.6 billion on August 22, pointing to saturation in the derivatives market. This high leverage may precede volatility as markets typically punish traders who extend their positions too much.
Support from Major Holders
Ethereum's price receives substantial support from major holders on Binance, who have increased their positions steadily since July. Active accumulation of tokens occurred through both spot and futures orders. Unlike retail traders, major players often wait for confirmation, explaining their activity only after Ethereum's upward movement.
Ethereum is on the brink of new records; however, the high degree of leverage and peak positions of traders in derivatives on Binance could prompt a correction, which is essential for market participants to consider.
