Analytics Firm Warns of Leverage Build-Up in Ethereum Amid Rallies, Says Momentum Awakening for One Solana Challenger
A market intelligence firm is warning traders that leverage is building up in Ethereum ( ETH ), creating volatility risk for bulls.
In a new thread on the social media platform X, the crypto analytics platform Altcoin Vector says that leverage risk is building within the second-largest digital asset by market cap despite ETH’s most recent price rise being backed by the spot market and exchange-traded funds (ETFs).
“ETH Futures OI (open interest) just hit a new ATH (all-time high) – double since May – and price is climbing with it. Unlike late 2024, this rise is backed by ETF inflows and spot momentum, but… OI at historic levels is a double-edged sword. Conviction is back, but leverage risk is building.”
Source: Altcoin Vector/X
Ethereum is trading for $3,771 at time of writing, a fractional increase on the day.
Moving on to Solana ( SOL ) challenger Sui ( SUI ), Altcoin Vector says that the layer-1 chain looks like it’s picking up momentum that could lead it to outperform Bitcoin ( BTC ) en route to a $5 price tag and beyond.
“ETH is leading, even outpacing BTC – but this phase of rotation is about spotting alts that don’t just catch up… they outperform. SUI fits that bill. High-beta, strong trader interest, and just pumped +10% in 24h. Momentum is awakening. Impulse hasn’t fully kicked in yet – when it does, $5 target is just the beginning.”
Source: Altcoin Vector/X
SUI is trading for $4.22 at time of writing, a 5.2% increase on the day.
Concluding its analysis with the top crypto asset by market cap, Altcoin Vector says that BTC’s latest dip shouldn’t be a concern.
“Bitcoin’s drop isn’t a breakdown, it’s a healthy correction. Structure remains bullish. Optimal signal was cooling but now shows the first signs of recovering momentum. BTC is holding above support, though we could still test $112,500. Momentum paused, but trend is intact.”
Source: Altcoin Vector/X
BTC is trading for $119,503 at time of writing, a fractional increase during the last 24 hours.
Generated Image: DALLE3
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
After Pectra comes Fusaka: Ethereum takes the most crucial step towards "infinite scalability"
The Fusaka hard fork is a major Ethereum upgrade planned for 2025, focusing on scalability, security, and execution efficiency. It introduces nine core EIPs, including PeerDAS, to improve data availability and network performance. Summary generated by Mars AI. The accuracy and completeness of this summary are still being iteratively updated by the Mars AI model.
Decoding VitaDAO: A Paradigm Revolution in Decentralized Science
Mars Morning News | ETH returns to $3,000, extreme fear sentiment has passed
The Federal Reserve's Beige Book shows little change in U.S. economic activity, with increasing divergence in the consumer market. JPMorgan predicts a Fed rate cut in December. Nasdaq has applied to increase the position limit for BlackRock's Bitcoin ETF options. ETH has returned to $3,000, signaling a recovery in market sentiment. Hyperliquid has sparked controversy due to a token symbol change. Binance faces a $1 billion terrorism-related lawsuit. Securitize has received EU approval to operate a tokenization trading system. The Tether CEO responded to S&P's credit rating downgrade. Large Bitcoin holders are increasing deposits to exchanges. Summary generated by Mars AI. The accuracy and completeness of this summary are still being iteratively improved by the Mars AI model.
Trending news
MoreCrypto prices
More
