Retail Traders Fuel Bitcoin Surge as Ethereum Navigates High Leverage Risk

Bitcoin is poised for a potential breakthrough, driven by a shift in trading dominance from whales to retail investors. Meanwhile, Ethereum faces a critical juncture with high leverage despite record-setting institutional inflows. Data reveals a dramatic change in order sizes, where small traders now dominate the futures market, indicating a potential breakout soon. This trend contrasts with larger whale activity, which often signals distribution phases before market dips. With large sellers seemingly staying cautious, Bitcoin could surge past its all-time high in the coming weeks.   Analysts are also observing that Bitcoin’s resurgence coincides with a technical indicator moving back above its 50-day exponential moving average, suggesting potential for short-term rallies. However, Ethereum is grappling with high leverage levels. The market-wide estimated leverage ratio has climbed to 0.68, signaling heightened volatility risks. Binance’s lower reading of 0.52 suggests similar pressure on other platforms. The situation further adds to the debate regarding potential sell pressure stemming from liquidations or arbitrage trades. 2 Ethereum’s medium-term outlook remains strong as record inflows into U.S. spot ETH ETFs, totaling $726.6 million, continue to fuel its growth. This is further boosted by institutional investments from firms like BlackRock and Fidelity, pushing total holdings past the five-million ETH mark valued at approximately $20.3 billion. On-chain activity continues to surge with increased transaction volumes, staking participation, and regulatory clarity surrounding liquid staking. Ethereum’s key support ranges between $3,980 and $4,020, while resistance is located around $4,450 to $4,550. The post Retail Traders Boost Bitcoin as Ethereum Faces Leverage Risks appeared first on DeFi Planet.