After multiple cycles and watching too many liquidations, I made a deliberate decision to cut my leverage usage on ETH dramatically.The combination of L2 fragmentation, unpredictable gas spikes, and fast-moving funding rates turned what used to be decent setups into high-risk gambles. Most traders still treat ETH perpetuals like a casino, opening oversized positions with 10x+ leverage and hoping for the best. I now keep leverage on ETH at maximum 3-4x, with strict risk per trade under 1%. The rest of my ETH exposure is mostly spot or staked. It feels much less stressful and the longevity of the account has improved noticeably. Those chasing high leverage on ETH right now are playing a dangerous game, especially with current market structure.
Who else has significantly dialed down leverage on majors this year?
Why I reduced my ETH leverage plays significantly in 2026
byu/Aveniquee inethtrader
Posted by Aveniquee
1 Comment
good move tbh. i cut my eth leverage to like 2x max after getting burned couple times in 2025. those funding rates were absolutely mental during summer – was paying more in fees than making profit on some trades
the l2 thing really messed up my timing too. used to be able to predict when people would get liquidated based on gas but now with all these different chains its like impossible to read the market properly. arbitrum users behave totally different than mainnet degens
been mostly just dca into spot and stake what i can. way less exciting but my portfolio actually grows instead of getting wiped every few months lol. those 10x leverage guys on ct still posting screenshots but bet half of them blew up accounts we never heard about