**Ethereum Market Analysis: A Closer Look at Exchange Withdrawals and Leverage Ratios**

Recent data indicates a significant deviation between Ethereum (ETH) prices and exchange withdrawal transactions, which are highly correlated with market prices. The decline in physical withdrawals suggests a lack of demand for ETH, raising questions about the factors driving the price up.

A key metric to consider is the Estimated Leverage Ratio (ELR) of ETH, which has surged since mid-May, coinciding with the approval of the ETH ETF. The ELR, calculated as Open Interest divided by ETH Exchange Reserve, increased sharply even before the reserve decreased, indicating a substantial rise in leverage.

Despite the approval of the ETH ETF, ETH prices have remained range-bound. Given the current lack of withdrawals and unresolved high ELR, caution is advised for potential buyers.