Ethereum’s Leverage Surge Signals Volatility and Opportunities in Crypto Trading – BitRss

Ethereum’s Ether (ETH) has emerged as a focal point for traders seeking high returns through leveraged transactions, despite Bitcoin’s (BTC) dominance in institutional interest. According to data from CryptoQuant, ETH’s estimated leverage ratio reached a record high of 0.57 on Wednesday, up from 0.37 at the beginning of the last quarter of 2024. This rapid increase indicates a growing appetite for risk among traders.

How Leveraged Trading Affects Traders

Leveraged trading allows traders to control larger positions with less capital. For instance, with a 10:1 leverage ratio, a $1,000 margin can open a $10,000 position. However, while this mechanism can amplify profits, it can also magnify losses.

<img class=”size-full wp-image-420260″ src=”https://coin-turk.com/wp-content/uploads/2025/01/Altcoin-Ethereum $3,530-scaled.webp” alt=”” width=”2560″ height=”1440″ />Altcoin Ethereum Leverage Ratio