Ethereum leverage falls 91% as ETF inflows offset whale selling

Ethereum derivatives leverage on Binance and Bybit fell 90.9 percent to $102 million by Aug. 30, yet ETH held near $2,500 as spot ETF inflows filled the demand gap.

Data from CryptoQuant shows combined open interest on the two exchanges grew by $1.12 billion in the seven days ending Aug. 22 as traders chased a breakout, then unwound sharply. Binance's share fell from $843 million to $94 million, while Bybit dropped from $277 million to $8 million.

Spot Ethereum ETFs have filled the void. U.S.-listed products recorded $102.1 million in net inflows on Aug. 28, a 10th consecutive positive session, with cumulative inflows exceeding $1 billion since mid-August, per Farside Investors. BlackRock's ETHA led with $83.8 million, while its staking-enabled ETHB added $42.6 million. Fidelity's FETH saw $24.3 million in outflows.

The test comes from whale supply. Address 0x2Ea2 deposited 40,881 ETH worth $100.67 million to Binance, OKX, Bybit, Kraken and Gate over two days, per Arkham Intelligence. The wallet still holds 10,506 ETH worth roughly $25.52 million. If ETF inflows continue at current pace, they must absorb that supply to keep ETH above $2,500.

ETF demand replaces fading derivatives

Since Aug. 15, U.S.-based Ethereum ETFs have drawn approximately $1.5 billion in net investment over 10 sessions. BlackRock's ETHA accounted for 71.9 percent, or roughly $1.02 billion, of total inflows. At an ETH price between $2,400 and $2,500, those purchases represent approximately 570,000 to 630,000 ETH in net spot demand.

The weekly picture is equally strong. Ether funds added $824.42 million during the week of Aug. 24-28, with daily inflows rising from $115.57 million on Monday to $234.51 million by Thursday, per Farside data. That marks the highest weekly inflow since October 2025.

ETF inflows matter because they create direct demand for ETH in the spot market without adding leverage through futures. Continued inflows could support ETH's stabilization even if derivative positions keep shrinking.

Whale deposits test the $2,500 floor

The whale's exchange deposits do not necessarily mean the ETH was sold. But placing tokens on an exchange makes them immediately available to trade, and continued sales could absorb some of the spot demand currently supporting ETH near $2,500.

The wallet's remaining 10,506 ETH represents additional potential supply. If that balance follows the earlier deposits, ETF demand must absorb heavier selling to maintain price stability.

Ethereum traded at $2,455.44 as of publication, with a market capitalization of $296.33 billion and 24-hour volume of $5.96 billion. Bitcoin's dominance ticked up to 57.56 percent, per CryptoRank, as ETH's share slipped to 10.86 percent.

Analyst Michael van de Poppe said Ethereum appears to be breaking out of its previous range, projecting that "ETH could next move toward the $3,200 mark before targeting $3,500" if the bullish formation holds.

This article is for informational purposes only and does not constitute investment advice.