Leveraged positions in Ethereum (ETH) on Binance have surged to a new all-time high (ATH) this week, coinciding with the altcoin climb to a six-week high.
As of March 20, more than 75% of all Ethereum positions on Binance are leveraged, according to data from on-chain analytics platform CryptoQuant. The platform’s Estimated Leverage Ratio (ELR), which compares total Open Interest (OI) to the amount of ETH held in exchange wallets, suggests that for every 1 ETH held on Binance, traders have opened leveraged positions equivalent to roughly 3 ETH.
ETH estimated leverage ratio on Binance. Source: CryptoQuantEthereum price gains on extreme leverage
Following the spike in leveraged positions, ETH has gained more than 9% in March, trading at approximately $2,146 at the time of writing. The move comes as Binance, the world’s largest crypto exchange by trading volume, continues to see elevated derivatives activity.
ETH price performance 30D. Source: FinboldDuring the past 24 hours, Ethereum’s traded volume on all exchanges dropped 16.6% to hover around $22.12 billion, as per metrics from CoinMarketCap.
Source: https://finbold.com/ethereum-leverage-surges-to-75-on-binance-heres-what-it-means/
