Ethereum Faces High Downside Risks Amid Leveraged Trading, Bitcoin Struggles to Sustain Rebound

Matrixport’s latest daily analysis highlights the challenges Bitcoin faces in sustaining a meaningful recovery amid prevailing seasonal trends. Despite recent attempts at a rebound, the report emphasizes that Bitcoin must maintain levels above $105,000 to preserve its technical integrity. The analysis further shifts focus to Ethereum, noting that its recent price surge lacks fundamental backing and is predominantly fueled by leveraged trading activity. This reliance on futures positions has heightened Ethereum’s exposure to downside volatility, as evidenced by the recent sharp price corrections. With market leverage remaining elevated, Matrixport underscores the persistent risk of continued downward pressure on Ethereum, signaling caution for investors navigating these volatile conditions.