Ethereum Price Holds Firm Despite 91% Leverage Crash

Ethereum's price has remained stable near $2,500 despite a significant drop in leverage growth on major exchanges. According to CryptoQuant, the combined Open Interest (OI) on Binance and Bybit decreased by 90.9% over the past week, from $1.12 billion to just $102 million.

The collapse of leverage is a natural response as traders take profits after Ethereum's breakout towards $2,500. However, institutional demand has picked up the slack, with spot ETFs buying substantial amounts of Ether (ETH).

U.S.-based Ethereum ETFs have seen approximately $1.5 billion in investment over 10 days, with BlackRock's ETHA accounting for 71.9% of total investment.

This influx of capital is significant because it creates direct demand for ETH without adding leverage through futures. As a result, the price has remained stable despite decreasing derivatives activity.