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.
Ethereum 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.
During 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/