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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