- Ethereum Open Curiosity hits ATH, however rising leverage heightens threat of sharp liquidations.
- $123B in ETH sits close to price foundation, exposing the market to sentiment-driven reversals.
Is Ethereum [ETH] skating on a knife’s edge?
Whereas Open Curiosity has climbed to file highs — an indication of heightened speculative urge for food — a staggering $123 billion of ETH’s market cap now hovers simply 0-20% above price foundation.
With a dense cluster of holders positioned between $2.3K and $2.5K, even minor value corrections may tilt massive parts of the community into the crimson.
This raises the stakes for Ethereum’s subsequent transfer, as volatility threat intensifies in an already fragile market.
Ethereum Open Curiosity hits an ATH
Ethereum Futures are experiencing a surge in speculative exercise, with Open Curiosity climbing to an all-time excessive of $35.69 billion, per CoinGlass data.
Supply: CoinGlass
This marks aggressive positioning by merchants anticipating continued upside. The sharp rise in Open Curiosity all through Could has outpaced ETH’s value motion — suggesting rising leverage within the system.
Whereas this bullish sentiment can gasoline speedy positive factors, it additionally will increase Ethereum’s publicity to volatility.
A sudden value transfer in both course may set off cascading liquidations, making the present setup each promising and precarious.
Tenuous positive factors
In response to Glassnode, $123 billion of ETH’s market cap is concentrated within the 0-20% revenue band, with most of it acquired between $2,300 and $2,500.
This sharp enhance in at-risk capital says that even a modest pullback may push a good portion of holders into unrealized losses.
Supply: Glassnode
The chart reveals a swelling of this cohort in Could, regardless of the broader rally.
In impact, Ethereum’s climb has positioned an unlimited quantity of capital on a slim ledge — exposing the market to swift sentiment reversals if value momentum breaks.
