Ethereum (ETH) is attracting attention as leveraged bets and institutional capital converge. This combination has pushed the futures market of the network to a new extreme.
Analysts are monitoring Ethereum in the context of discussions about an altcoin season, with ETH considered a top candidate.
Leverage and Institutions Driving Ethereum Market Momentum
According to blockchain analysis company glassnode, Ethereum open futures contracts have reached an All-Time-High (ATH), surpassing $20 billion, even as ETH spot price remains below the critical $2,800 level.
"Ethereum open futures contracts (cash-settled) just reached a new All-Time-High — surpassing $20 billion… leverage continues to increase as traders use stablecoin," glassnode wrote in a post.
Ethereum open futures contracts. Source: glassnode on XThe glassnode comment appeared just two days after CryptoQuant analysts emphasized that Ethereum futures had previously recorded a peak of 7.17 million ETH. Thus, this expansion shows sustained interest in speculative positions.
Based on the report, cash-settled contracts are driving most of this activity, increasing exposure and, accordingly, market volatility.
On-chain data also reveals that retail investors are leaning towards derivative products, even as Bitcoin on-chain activity stagnates.
"Futures contract trading frequency among retail investors just spiked above the 1-year medium… Bitcoin network looks like a ghost town: low on-chain activity and small volume… while ETH open futures hit ATH, and retail trading frequency is surging," CryptoQuant stated.
BlackRock's ETH Buying Spree Shows Deepening Institutional Bet on Ethereum
This risk appetite coincides with a new buying wave from institutions like BlackRock. On Wednesday, the asset management company bought ETH for two consecutive weeks, with an additional $163.6 million in Ethereum purchases.
Blockchain analysis company Lookonchain also reported that whales are accumulating ETH, withdrawing millions of dollars in Ethereum over the past few days.
Abraxas Capital, an investment organization, withdrew 44,612 ETH ($123 million) from Binance and Kraken on Wednesday.
Although retail trading volume on centralized exchanges (CEXs) remains low for years, long-term Bitcoin holders are increasing hoarding. However, in Ethereum's case, momentum seems to be shifting towards speculation and active accumulation, from both retail and institutional sides, with traders and analysts paying attention.
"The $2,800 level is crucial throughout this cycle. It has triggered the biggest moves after retesting or breaking above/below it," analyst Daan Crypto Trades commented.
Ethereum price chart. Source: Daan Crypto Trades on X.Analyst Duo Nine also agrees with this view, believing Ethereum is preparing for a strong surge that could break through the psychological $3,000 level.
The general sentiment among analysts is that Ethereum could be a clear choice right now, with current narratives likely to continue building around it as positive sentiment increases.
However, this leverage increase comes with risks. History shows that high open interest and excessive retail positions often precede strong liquidations. Based on this perspective, Lookonchain emphasizes that some traders are also opening short positions for ETH.
With many positions supported by stablecoin in cash-settled futures contracts, any volatility could trigger a chain reaction.
Ethereum (ETH) price performance. Source: BeInCryptoAt the time of writing, Ethereum is trading at $2,755, down 0.27% in the past 24 hours.
