Leverage in Ethereum’s derivatives market is building rapidly as the token edges toward its record price. Data from Glassnode show futures open interest climbing to a fresh all-time high near $35.5 billion on 13 August, while options open interest reached about $16.1 billion, just shy of last year’s peak. Trading on the regulated CME platform has mirrored the surge, with ETH futures clocking a record $118 billion in volume during July. The concentration of leveraged bets has produced a series of large liquidations. CoinGlass figures indicate roughly $296 million in Ethereum positions were wiped out in the 24 hours to 13 August, including $93 million in shorts. A day later, a market-wide pullback—coinciding with stronger-than-expected U.S. producer-price data—triggered about $460 million in crypto liquidations within an hour, most of them from long positions. With spot ETH hovering around $4,590, analysts warn that a decisive break above the November 2021 all-time high of $4,878 could force as much as $2 billion of short positions to unwind, potentially amplifying price swings. The elevated open interest and recurring liquidations underscore the growing influence of derivatives activity on Ethereum’s spot market as traders position for a possible new peak.