- The Ethereum price escaped the long-consolidation below $2,142, signaling a renewed recovery force to $2,447.
- The steady rise in $ETH’s estimated leverage ratio indicates that traders are gradually returning to the derivatives market with increased confidence.
- The coin price above the 20-and-50-day exponential moving average further reinforces the increasing bullish momentum in the market.
Ethereum, the second largest cryptocurrency by market capitalization, showed low volatility on March 17th to currently trade around the $2,330 mark. The neural candle in the daily chart showing short body and price rejection on either suggest uncertainty from buyers to sellers to drive a sustainable surge. However, the traders are building underlying leverage positions in the derivatives market, signaling their expectations for a strong recovery ahead.
$ETH Rebounds as Leverage Builds Back After Historic Liquidation
The cryptocurrency market witnessed a notable recovery since last week despite the uncertainty from geopolitical tension. Following the momentum, the Ethereum price bounced from $1,927 to $2,321 in over a week, registering a gain of 20%. Consequently, the assets’ market cap surged to $280 billion.
A notable contributor to this surge can be linked to strong ETF inflows, signaling institutional appetite.
However, a shared analysis from oinonen_t shows Cryptoquant’s chart on Ethereum estimated leverage ratio (ELR) on Binance.
On October 10, 2025, a severe flash crash hit the cryptocurrency market, leading to the forced closure of over $19 billion in leveraged positions across exchanges in a single 24-hour span. This event has been the largest liquidation wave in the sector’s history, which impacted millions of traders and caused cascading sell-offs in major assets such as Bitcoin and Ethereum.
The turmoil resulted in a massive deleveraging in Ethereum derivatives on Binance. CryptoQuant’s (ELR) for Ethereum, based on open interest divided by the $ETH reserves of the exchange, went down from 0.56 to 0.41 – a decrease of 27%. This measure is an average of the leverage used by traders, high readings suggest aggressive positioning with borrowed funds compared to available collateral and lower readings suggest reduced risk taking and unwinding of positions.
The reason behind the crash was a mix of the macroeconomic pressures such as trade-related announcements, existing high leverage which amplified the impacts of price movements in times of low liquidity. It was a huge restart in exposure to the market.
In the following months the Ethereum ELR on Binance climbed back to 0.69 by mid-March 2026. This upward movement could be suggestive that traders are slowly returning to higher leverage in derivatives, with re-emergence in the digital assets.
Ethereum Price To Rest a Major Pivot Level at $2
On March 15th, the Ethereum price gave a bullish breakout from the $2,142 resistance, signaling an escape from a rectangle pattern. Since early February, the coin price resonated actively within two horizontal levels of $2,124 and $1,180, signaling the market uncertainty amid geopolitical tension.
The recent breakout signals the renewed recovery momentum from (Average Directional Index) suggest the strengthening in recent breakout.
With sustained buying, the Ethereum price is poised for a 5% surge and challenges the resistance of the long-coming trendline at $2,447. The downsloping drives the current correction in $ETH, with previous encounters notably changing the direction of price.
Thus, a potential breakout from the resistance could further accelerate the buying pressure and bolster $ETH for a rally to $3,000.
$ETH/USDT -1d Chart
However, if the sellers continue to face overhead supply at this resistance and create a reversal pattern, the coin price could face another correction.
