Binance Ethereum Leverage Ratio and Price Relationship

A recurring pattern is observed in the chart. When the Leverage Ratio rises rapidly above the price, excessively leveraged long positions accumulate in the market. This creates fertile ground for liquidity hunting.

First, there is a sharp but short-lived price drop. Then, the price reacts strongly upwards. This cycle is clearly seen in the chart in February, April, September, and November 2025. It appears that the declines are for the purpose of clearing leverage.

Specifically, in April 2025, leverage increases, price falls, leverage decreases, and price rises strongly.

In October 2025, a sharp leverage spike and sudden dump are followed by a continuation of the trend.

According to this data, an increase in leverage is not the cause of the decline, but rather a trigger for it.

The current situation is very important. Because the Leverage Ratio is approximately 0.60, a historically quite high band. The price is trading below the Leverage Ratio. This combination has historically generated new upward waves following short-term wicks. Currently, leverage is increasing despite the price increase. This indicates that there is still a willingness to hold positions in the market.

In light of this data, we can say that the probability of an uptrend in the market is high.

However, a short-term liquidation cleanup may occur beforehand.

In the past, every dip when leverage was at these levels resulted in a 10-25% rise. If the same scenario occurs again, the price could quickly show sharp upward movements. $ETH