Ethereum Leverage Hits Record as Open Interest Sinks to 2024 Lows

Key Insights:

• Ethereum leverage hit a record while open interest fell near Nov. 2024 lows.
• Ethereum leverage rose near $2,700 as January conditions weakened versus July.
• Lookonchain stated that a user lost 4,556 Ether (ETH) in an address-poisoning scam.

Ethereum Leverage Spiked As Open Interest Slid Near Nov. 2024 Lows. Its derivatives data sent conflicting signals on Jan. 31, 2026. Binance data put Ethereum leverage near 0.675, a record reading. The same dataset puts open interest near $16.4 billion.

The split mattered because it concentrated risk inside fewer positions. Traders used higher leverage near $2,700, but there was no breakout. That mix increased liquidation risk during fast swings.

Ethereum Leverage Rose While Open Interest Fell

Binance’s Estimated Leverage Ratio reached about 0.675, data showed. The metric tracked leverage relative to exchange reserves. The reading marked the highest level ever for that series.

The leverage spike arrived without a matching expansion in exposure. Ethereum traded around $2,700 when writing, Binance data showed. Traders appeared to amplify smaller moves.

Open interest fell to about $16.4 billion, the data also showed. The figure marked its lowest level since last November. The decline showed fewer outstanding derivative contracts across venues.

That divergence implied repositioning, not broad participation. Fewer traders kept positions open, but they used more leverage. Liquidity became more sensitive to forced unwinds.

It Faced a Changed 2.7K Setup.

One analyst compared Ethereum at $2,700 in July 2025 and January 2026. The analyst wrote that price levels carried “different versions” across regimes. The analyst used Bitcoin conditions to frame the shift.

In July 2025, the analyst said Bitcoin showed buying strength. Bitcoin closed above the 50-week simple moving average, the analyst wrote. The analyst also cited anchored volume-weighted average price levels as support.

The analyst said Ethereum spot exchange-traded fund holdings increased at that time. He said the U.S. Clarity Act still awaited a House vote. The analyst also said whales held larger unrealized profit cushions.

In Jan. 2026, the analyst said Bitcoin showed selling pressure. Bitcoin traded below the 50-week average and key anchored levels, the analyst wrote. The analyst said Ethereum ETF holdings fell after an October peak.

The analyst said the Clarity Act faced delays and partisan friction. He cited a party-line Senate Agriculture Committee vote. Democrats raised political profiteering concerns.

The analyst also tracked whale unrealized profit ratios. He cited +0.15 for 10,000–100,000 ETH holders. The analyst cited +0.38 for at least 100,000 ETH holders.

Those inputs changed the trade at $2,700, and Dollar-cost averaging suited longer horizons. The analyst also preferred liquidity or shorts for near-term positioning.

Ethereum’s Leverage Met Operational Risk in Transfers.

Operational risk also hit the market. Lookonchain said a victim lost 4,556 ETH worth $12.4 million. Lookonchain said the victim made a copy-and-paste mistake.

Lookonchain said the victim often deposited to Galaxy Digital. It said an attacker created a poison address that looked similar. The attacker sent dust transfers to seed transaction history.

Lookonchain said the victim copied the address from past transfers. The victim then sent 4,556 ETH to the attacker, it said. The case showed how speed and habit created losses.

Address-poisoning attacks thrived during busy market phases. Traders moved funds quickly to meet margin demands. One wrong paste turned a routine deposit into a write-off.

Ethereum Leverage Left a Narrow Near-Term Outlook.

Ethereum ETH traded near $2,700 as leverage climbed and exposure shrank. Binance leverage data showed higher gearing despite weaker participation. Open interest data showed fewer contracts carried that risk.

TradingView price action also tracked a lower-high trend from the 2025 peaks. The chart showed the price sliding under a descending resistance line. That setup tightened the range around the $2,700 support level.

That structure raised sensitivity around key price levels. Smaller moves could trigger liquidations or short squeezes. Traders watched $2,700 as the immediate pivot.

The analyst said Sunday’s weekly close mattered for Bitcoin. He tied that close to the 50-week average. That backdrop shaped Ethereum’s near-term risk appetite.

Ethereum leverage stayed elevated as traders faced tighter liquidity and transfer risk. The data and the Lookonchain case shared one message. Traders had less margin for error near $2,700.