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Was the ETH price flash crash to $3,180 triggered by excessive leverage?
Demand for Ether leverage sharply increased in the past 24 hours, but data does not point to liquidations being the main driver for the price correction. Ether price gained 14% between Feb. 26 and Feb. 28, reaching the highest level in almost two years at $3,484, but the movement coincided with a surge in the cost for bullish leverage positions, which is somewhat concerning. Given that Ether experienced a flash crash down to $3,180 on Feb. 28, some investors believe that excessive optimism driven by fear of mis FOMO has increased the risk of cascading liquidations. Not all Ether leverage demand is related to YOLO bets Firstly, one needs to note that some traders might need temporary leverage while they raise cash, either by selling other assets or waiting for deposits to kick in. Such movements are common in the heat of the market, even for professional arbitrage desks, and cause the funding rate to soar, which can last for a couple of days or even weeks. Source - Coin Telegraph
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