9:05 AM ▪
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The cryptocurrency market often changes without warning, and Ethereum provides a new example of this. After a period of massive liquidations, the signal from Binance is now catching the attention of the most experienced traders. One question arises behind this movement: is a new cycle of liquidity forming? Between the re-leveraging and renewed activity, recent data suggests a potential turning point for the market’s second largest cap.
In short
- Binance’s key indicator signals the return of leverage on Ethereum, signaling a resurgence of risk-taking in the market.
- After the crash, which led to more than $19 billion in liquidation, traders are gradually returning to leveraged positions.
- An increase in the estimated Leverage Ratio indicates a possible entry into a new phase of liquidity.
- Ethereum confirms its technical recovery by crossing key levels and establishing bullish momentum.
The return of leverage on Binance revives market momentum
One of the most closely watched signals by analysts comes from the Estimated Leverage Ratio (ELR), which is an indicator that measures the use of leverage in the derivatives markets. Recent data shows a clear reversal of the trend after the massive austerity phase:
- ELR on Ethereum rebounded to 0.69 in mid-March;
- During the October 10 crash, it fell from 0.56 to 0.41 (-27%);
- This episode was accompanied by more than $19 billion liquidated within 24 hours.
As the analysis points out, this move suggests a gradual return to leverage, a sign that traders are reinvesting in risky positions.
This change is explained by the very function of this indicator. The increase in ELR reflects increased exposure to derivatives markets. The current upswing indicates that players are no longer just watching the market, but actively taking positions, which generally corresponds to the early stages of the liquidity cycle.
Ethereum is overcoming key technical limits in an uncertain macroeconomic climate
In addition to the leverage data, Ethereum is also displaying some notable technical signals. The price broke the important resistance around $2,152, opening the way to new targets.
The asset hit $2,386 after eight straight days of gains, with targets identified at $2,337 and then $2,538. This progression fits into a structured recovery phase, supported by clear bullish momentum. The $2,000 level is being watched as a support boundary in case of a correction.
This movement occurs in a specific macroeconomic environment. Expectations around monetary policy play a decisive role, with a 95% probability that the Federal Reserve will leave rates unchanged. Such a context favors risky assets, including cryptocurrencies, by reducing pressure on funding conditions. Ethereum thus benefits from the alignment of technical and macroeconomic factors.
The signal sent by Binance revives the debate about the market’s trajectory. Between the return of leverage and the technical recovery, the price of ETH is developing in a favorable but volatile environment. What happens next will depend on the market’s ability to sustain this momentum without falling into a new phase of excessive volatility.
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A graduate of Sciences Po Toulouse and holder of the blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I committed myself to raising awareness and informing the general public about this ever-evolving ecosystem. My goal is to enable everyone to better understand blockchain and take advantage of the opportunities it offers. I strive every day to provide an objective analysis of current events, decipher market trends, convey the latest technological innovations, and put into perspective the economic and social issues of this ongoing revolution.
DISCLAIMER OF LIABILITY
The views, thoughts and opinions expressed in this article are solely those of the author and should not be construed as investment advice. Before making any investment decision, do your own research.
