Ethereum nears all-time high as altcoin leverage reaches record $47B levels

Ethereum (ETH) approached wrong 3.9% of its all-time precocious arsenic altcoins demonstrated wide strength.

Leverage crossed large alternate cryptocurrencies reached a grounds $47 billion according to Glassnode data.

Ethereum traded astatine $4,738.94 arsenic of property time, up by 3.1% successful the past 24 hours and just 2.7% away from its all-time precocious registered successful November 2021. 

The rally coincided with widespread altcoin gains, with seven-day returns showing Ethereum and Dogecoin some up 25.5%, XRP gaining 16.2%, and Solana advancing 13.6%.

Bitfinex caput of derivatives Jag Kooner attributed Ethereum’s momentum to “strong ETF inflows, organization accumulation, and a favourable macro backdrop aft softer CPI information boosted rate-cut expectations.” 

The operation has driven traders backmost into hazard assets, with some Bitcoin and Ethereum seeing renewed agelong positioning.

Options enactment signals breakout expectations

Ethereum options unfastened involvement climbed to a year-to-date precocious of approximately $16.1 billion alongside the spot terms rally, according to Glassnode.

The elevated unfastened involvement signals beardown request for optionality astir the imaginable breakout supra erstwhile highs.

Call premium activity confirms bullish positioning, with traders paying astir $82 cardinal connected Aug. 8 and $31.5 cardinal connected Aug. 11, consistently outpacing enactment premium. 

Glassnode information indicated traders are paying premiums for upside convexity arsenic Ethereum approaches grounds levels.

Options information shows debased implied volatility contempt the unfastened involvement buildup, suggesting markets expect a crisp determination up portion hedging downside risk. 

Kooner, from Bitfinex, noted that compressed volatility indicates immoderate macro daze could trigger important terms swings.

Altcoin assemblage shows statistical outperformance

Market-cap-weighted seven-day returns crossed apical altcoins breached the line successful a modular deviation set 3 times since April, marking statistically important outperformance periods. 

The magnitude and frequence item sustained superior rotation from Bitcoin into the altcoin sector.

The leverage buildup creates conditions wherever terms movements tin trigger cascading effects crossed aggregate assets.

Glassnode highlighted that the wide altcoin spot reflects “an intensifying speculative bid and a market-wide appetite for higher beta exposures arsenic momentum builds extracurricular Bitcoin.”

The station Ethereum nears all-time precocious arsenic altcoin leverage reaches grounds $47B levels appeared archetypal connected CryptoSlate.