Market Leverage Surges as Ethereum Short Positions Hit Record High

The open interest in Ethereum futures has surpassed $20 billion, setting a new all-time high and underscoring a sharp increase in speculative activity. The rise in short positions indicates that an increasing number of traders are betting on a decline in Ethereum’s price.

At the same time, the estimated leverage ratio (ELR) has peaked, reflecting a greater reliance on borrowed funds. This heightened leverage amplifies the risk of rapid liquidations, posing significant volatility for the market.