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.

Follow us on X, Facebook and Telegram

Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox

Check Price Action

Surf The Daily Hodl Mix

&nbsp

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: DALLE3

A widely followed analyst believes that crypto is poised to replicate a bubble witnessed in the late 1990s, triggered by a surge in internet adoption.

Trader Michaël van de Poppe tells his 785,900 followers on the social media platform X that he’s extremely bullish on the crypto market as mainstream institutional players begin to embrace the asset class.

According to Van de Poppe, conditions in the crypto market are reminiscent of the Dot-com era, when tech and web-based firms saw their valuation skyrocket as investors piled in and became overexuberant on the emerging sector.

“All I know:

This is the cycle where everything is going to go ballistic.

Higher than ever.

The Dot-com bubble type of cycle for crypto, where there’s a lot of liquidity flowing into this asset class and a lot of adoption.

It’s basically the only asset class to be significantly outperforming everything.”

The Dot-com bubble exploded in 2000, destroying $5 trillion in wealth and driving thousands of companies into bankruptcy.

One altcoin on the trader’s radar for a potential repeat of the Dot-com bubble is payments altcoin XRP. Van de Poppe predicts that the coin will come close to its all-time high (ATH) of $3.40.

“When things go absolutely vertical, that’s the moment where you want to zoom out and get higher time frame entry points.

The same applied for XRP.

Marked the level around $1.75 as an important one for entries and it’s up 50% since.

I assume we’ll attack the ATHs soon.”

At time of writing, XRP is worth $2.52.

The trader is also bullish on the Solana (SOL) rival Sei (SEI). Van de Poppe predicts that SEI will rally by as much as 169% from current levels.

“Indeed, break and flip and the next target is $0.30.

I think that SEI will be trending up significantly more.

First stop is $0.30, after that a slight correction for people to jump into the asset and then we’ll continue towards the $0.50-0.70 range.”

At time of writing, SEI is worth $0.26.

Follow us on X, Facebook and Telegram

Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox

Check Price Action

Surf The Daily Hodl Mix

&nbsp

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney