📉 Ethereum's Tough Market Cycle
Ethereum is facing one of its most challenging market cycles, with a weekly decline of over 6%. As the worst performer among the top five altcoins, this downturn raises questions about its future. The growing competition from Solana and shifting market dynamics are putting Ethereum's resilience to the test.

💰 Too Much Leverage in the Market
A spike in the Margin Lending Ratio indicates excessive borrowing, which often leads to forced selling and price declines. Recently, the ratio jumped from 38 to 72, signaling heavy borrowing of USDT. While this can show bullish sentiment, it also poses risks. If prices drop, traders may need to sell assets quickly to cover loans, driving prices lower. This pattern has appeared before, warning of potential trouble ahead for Ethereum unless bulls step in to support the price.

📊 Crucial Support Line
Ethereum is near a critical support line, trading at $2,468, which has been tested four times in less than two months. This level may offer a good buying opportunity, as whale activity has surged to a six-week high, indicating accumulation by major investors. However, this doesn’t guarantee an immediate bounce.

⚠️ Volatility and Open Interest
Uncertainty persists due to increased volatility, with open interest (OI) spiking to $13 billion. This makes Ethereum more prone to sudden price swings, especially if Bitcoin's downward trend continues. Monitoring the $2.4K support level is crucial, as a potential divergence could push ETH closer to $2.3K, setting the stage for a possible reversal. The next move largely depends on how well this support level holds in the coming sessions.