Ethereum Leverage Elevated Despite Long Squeeze, Glassnode Says
The Ethereum futures market remains overheated despite recent long liquidations. Glassnode reported $76.4 million in ETH long liquidations, with $55.8 million occurring in one hour, marking the second-largest spike in a year. Open Interest, which tracks total open Ethereum futures positions, decreased from $20.5 billion to $15.9 billion after the liquidation event, indicating a $4.6 billion reduction in positions. However, this level is still 22% above the 365-day moving average of $13 billion, suggesting elevated leverage persists. Historically, an overheated futures market can lead to increased volatility, indicating potential for further sharp price movements. Ethereum's price fell to around $2,100 but has since rebounded to approximately $2,800.
