Ethereum approached its all-time high by 3.9% as altcoins exhibited widespread strength. According to Glassnode data, leverage on major alternative cryptocurrencies reached a record $47 billion.

Ethereum was trading at $4,738.94 at the time of the press release, up 3.1% in the last 24 hours and only down 2.7% from the all-time high recorded in November 2021.

This price surge coincides with broad gains in altcoins, with seven-day profits showing Ethereum and Dogecoin each up 25.5%, XRP up 16.2%, and Solana up 13.6%.

The head of derivatives at Bitfinex, Jag Kooner, believes that Ethereum's growth momentum is due to "strong ETF inflows, institutional accumulation, and a favorable macroeconomic backdrop after weaker CPI data boosted rate cut expectations."

This combination has driven traders back to risk assets, with both Bitcoin and Ethereum witnessing new buying positions.

Options Activity Signals Breakout Expectations

According to Glassnode, open Ethereum options contracts have risen to a year-high of approximately $16.1 billion alongside the spot price surge.

High open interest signals strong demand for options around the potential breakout above previous highs.

Call option activity confirms bullish sentiment, with traders paying around $82 million on August 8 and $31.5 million on August 11, consistently outpacing put option fees.

Glassnode's data shows that traders are paying a premium for increased convexity as Ethereum reaches record levels.

Options data shows low implied volatility despite rising open contract volumes, indicating the market expects a strong move while hedging against downside risk.

Kooner from Bitfinex notes that the compressed volatility suggests that any macro shock could trigger significant price swings.

The Altcoin Sector Shows Statistical Outperformance

The seven-day profit by market capitalization of leading altcoins has surpassed the threshold within a three-standard deviation range since April, marking a statistically significant outperformance.

The scale and frequency highlight the continuous capital rotation from Bitcoin into the altcoin space.

The increase in leverage creates conditions where price volatility can have a spillover effect across multiple assets.

Glassnode emphasizes that the strength of altcoins generally reflects "increasing speculative demand and market-wide interest in higher beta levels as momentum rises outside of Bitcoin."