[Bulls Are Back]
Despite the volatile macro environment, cryptos are seeing a bullish reversal, with Bitcoin ascending 8.6% within seven days. Ethereum, as a higher-beta digital asset, has climbed 13.9% in a week.
The recent move up clearly represents a risk-on shift, supported by strong ETF inflows, signaling institutional appetite.
[Ethereum’s Estimated Leverage Ratio Returns to Growth Trajectory]
The flash crash of October 10th represented a true leverage reset, reducing the Ethereum estimated leverage ratio (ELR) on Binance from 0.56 to 0.41, marking a -27% drop. The “10/10” will be known as the largest 24-hour liquidation event in crypto history. Over $19 billion in leveraged positions were forcibly liquidated within 24 hours.
Since then, the Ethereum estimated leverage ratio on Binance has gradually recovered, reaching a value of 0.69 in mid-March. The new ELR growth trajectory signals fresh optimism towards digital assets, with investors looking for additional leverage.
[About ELR]
CryptoQuant's Ethereum estimated leverage ratio (ELR) is a market indicator that measures the average leverage used by traders in the Ethereum derivatives market. It is calculated as: ELR = open interest ÷ exchange ETH reserve.
The ELR shows how much leverage traders are using on average, higher values mirror greater use of leverage (open positions growing faster relative to collateral/reserves), which often signals increased risk, higher trader risk appetite, and potential for elevated volatility or liquidations. On the other hand, lower values suggest more conservative positioning.
[What’s Next?]
The digital asset sentiment continues to improve, regaining the attention of traders. Bitcoin and Ethereum represent high-beta risk-on assets in this environment, while more conservative traders will likely accumulate gold-related tokens, including PAXG and XAUT.
Written by oinonen_t