Ether vulnerable as ‘meaningful unwinding’ on horizon — analyst

Ethereum’s borrowing costs for wrapped Ether (wETH) are increasing, affecting market stability. An analyst indicates that borrowing demand on Aave has surged to 95%, suggesting strained liquidity and could lead to a ‘meaningful unwinding’ of leveraged positions.

Markus Thielen remains optimistic about Ethereum’s long-term potential, expecting improved performance in the fourth quarter of the year. Historically, Q4 has outperformed Q3, with Ether averaging 22.59% returns during that period.