Ethereum Price Surges to Three-Week High Amidst Rising Leverage Concerns

Mars Finance reports that Ethereum's price surged 11.7% between September 17 and September 19, reaching a three-week high of $2,572. This price movement coincides with a significant increase in Ethereum futures open interest, which jumped to a 20-month high. As a result, traders are growing concerned that the rising leverage could amplify potential price volatility.

Lower interest rates favor a bullish outlook for ETH, but the US economy still faces risks. The recent ETH price rise aligns with an overall 8.3% surge in the cryptocurrency market, driven by US interest rate cuts and strong labor market data. This momentum also propelled the S&P 500 index to a record high on September 19. Lower interest rates reduce the cost for companies to issue new debt, alleviating concerns about potential market corrections.