Still, the $2,200 level has become crucial. If $ETH fails to defend it and turns the former support into resistance, the recovery could quickly lose steam. A breakdown could expose $2,000 or even $1,800.
Binance Leverage Ratio Raises Fresh Concerns
Onchain data adds another complication. Ethereum’s Estimated Leverage Ratio on Binance has climbed to approximately 0.1862, its highest reading in five months.
The indicator measures open futures positions relative to $ETH reserves held on the exchange. Its rise suggests traders are using more leverage and taking on greater derivatives exposure.
That’s not automatically bullish. The ratio doesn’t reveal whether positions are predominantly long or short, so treating it as confirmation of further upside would be premature.
Can Ethereum Hold Support Without Liquidations?
Higher leverage makes the market more sensitive to sudden price movements. If $ETH moves against crowded positions, liquidations could accelerate volatility and undermine the recovery.
For now, Ethereum price has reclaimed 200-day EMA offers a constructive technical signal, but the $2,200 defense remains essential. Bulls need to protect that level while managing the risks highlighted by Binance’s rising leverage ratio.
