EtherETHETH traded at over $2,000 Monday, as major exchanges intensified their derivatives trading.
This activity indicates a rapidly building up of speculative positions, which suggests traders are preparing themselves for an increase in volatility when ETH attempts break through its monthly trading range.
As leverage increases, ether derivatives are a good way to reduce it.
Ether derivatives exchanges recorded A netflow of 112,343 ETH was recorded on 7th March, the third largest spike since 2026. The biggest move was on February 6 when ETH jumped roughly 13% off its yearly lowest of $1,736.
CryptoQuant shows that earlier spikes of inflows into derivatives are often followed by short-term drops or sharp periods volatility.
Ether’s leverage ratio was also estimated. climbed On Wednesday, the number of open interest to exchange reserves reached a record high 0.78. This was higher than the previous highest level (0.778) recorded in January. It measures open interest as a percentage of exchange reserves. The measure is commonly used to determine how aggressively investors use borrowed funds.
If the reading is higher, then a greater percentage of positions are leveraged. As liquidations increase across derivatives markets, such conditions can amplify price movements in any direction.
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Cash Flows are at $2,050
Following a failure swing pattern at $2,150 on Wednesday, Ether now trades within a range of $1,800 to $2,000 per month. This rejection was a sign of profit-taking over local highs. The price then retraced back to internal liquidity levels around $1,900 and $2,000, which were formed at the beginning of last week.
This chart shows that the pivot point is bullish on an hourly basis. It tracks Monday’s recovery after the liquidity sweep occurred near $1,908 Sunday.
Market attention is likely to shift towards the zone of supply between $2,050 – $2,100, which was formed in late last week. A break above this range, and establishing that it is a support zone may enable ETH to significantly surpass $2150.
Seven-day liquidation data CoinGlass’s data shows that there are many short positions over the price. Nearly $273 in short-liquidation lever is sitting at $2,030.
Price levels are often influenced by large concentrations of liquidated short positions. The move to that area may cause forced buybacks of the leveraged short positions.
Crypto analyst Cyril-DeFi noted The analyst said that ETH/USD also tests a long-term rising trendline which has sustained the price multiple times since the previous market cycle. According to the analyst,
“Every time the price touched this support, it eventually led to a strong bounce. Right now, the $1.9k–$2k area looks like a key level that could determine the next move.”
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Source: cointelegraph.com
