Ether vulnerable as ‘meaningful unwinding’ on horizon — Analyst

Key Points

1. Ethereum's borrowing rates have surged, making it unprofitable to borrow ETH on platforms like Aave, potentially leading to a significant unwinding of leveraged positions.

2. The ETH/BTC ratio has risen 34% over the past 30 days, with ETH trading at $3,623, up 49% in the same period.

3. Aave's lending utilization rate has increased from 86% to 95% since July 8, indicating high borrowing demand and reduced supply.

4. Markus Thielen of 10x Research notes that ETH's technical indicators are deeply overbought, increasing near-term vulnerability.

5. Historically, Q3 is Ethereum's second-worst-performing quarter (average return of 8.19%), while Q4 is typically the strongest (average return of 22.59%).