Analytics Firm Warns of Leverage Build-Up in Ethereum Amid Rallies, Says Momentum Awakening for One Solana Challenger

A market intelligence firm is warning traders that leverage is building up in Ethereum (ETH), creating volatility risk for bulls.

In a new thread on the social media platform X, the crypto analytics platform Altcoin Vector says that leverage risk is building within the second-largest digital asset by market cap despite ETH’s most recent price rise being backed by the spot market and exchange-traded funds (ETFs).

“ETH Futures OI (open interest) just hit a new ATH (all-time high) – double since May – and price is climbing with it. Unlike late 2024, this rise is backed by ETF inflows and spot momentum, but… OI at historic levels is a double-edged sword. Conviction is back, but leverage risk is building.”

Ethereum is trading for $3,771 at time of writing, a fractional increase on the day.

Moving on to Solana (SOL) challenger Sui (SUI), Altcoin Vector says that the layer-1 chain looks like it’s picking up momentum that could lead it to outperform Bitcoin (BTC) en route to a $5 price tag and beyond.

“ETH is leading, even outpacing BTC – but this phase of rotation is about spotting alts that don’t just catch up… they outperform. SUI fits that bill. High-beta, strong trader interest, and just pumped +10% in 24h. Momentum is awakening. Impulse hasn’t fully kicked in yet – when it does, $5 target is just the beginning.”

SUI is trading for $4.22 at time of writing, a 5.2% increase on the day.

Concluding its analysis with the top crypto asset by market cap, Altcoin Vector says that BTC’s latest dip shouldn’t be a concern.

“Bitcoin’s drop isn’t a breakdown, it’s a healthy correction. Structure remains bullish. Optimal signal was cooling but now shows the first signs of recovering momentum. BTC is holding above support, though we could still test $112,500. Momentum paused, but trend is intact.”

BTC is trading for $119,503 at time of writing, a fractional increase during the last 24 hours.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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