The post ETH Price Is Struggling To Maintain Bullishness, Why? appeared on BitcoinEthereumNews.com.

ETH price action appeared to be on the verge of building up momentum for a sizable rally and even managed to push above $2,000. However, that attempt was thwarted and price reverted below this price point. ETH price exchanged hands at $1842.35 after a 1.33% jump in the last 24 hours. This pullback was out of character especially considering that it was only just recovering after an overall downtrend since December. ETH price action | Source: TradingView ETH’s struggle to maintain an uptrend suggests that the cryptocurrency has been experiencing weak demand despite being in a healthy discount. This trend might be pushing investors to embrace other coins that have recently been outperforming ETH. Latest ETH Price Rally Expectations Were Backed by Robust Leverage Apettite ETH’s inability to maintain a robust upside might be rooted in investor appetite for leverage. A spike in open interest was observed earlier this week, while spot flows remained relatively weak. This observation confirmed that the latest excitement among Ethereum investors was mostly in the derivatives segment. The trouble with this especially in an over-leveraged setting is that it creates a setup for a liquidation event. Interestingly, Ethereum’s estimated leverage ratio has been on the rise and recently surged to a new all-time high. This high was significantly higher than it was during ETH’s peak in December, likely due to the expectations of a strong recovery rally. ETH estimated leverage ratio and open interest | Source: CryptoQuant The surge in open interest also confirmed rising optimism accompanied by demand in the derivatives segment. According to CoinGlass, ETH open interest surged from $17.32 Billion to $19.94 Billion in the last 2 days. Just over $42 Million worth of liquidations were observed in the last 24 hours. This means the market is still actively attempting a leverage…

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Filed under: News - @ April 1, 2025 5:25 am