Brace For Market Impact: Ethereum Open Interest Has Reached A New All-Time High

Ethereum has predominantly stayed above $3,500 this week, with investors hopeful for a rebound to $4,000. Notably, optimism has led to record-breaking high open interests for Ethereum. While this increase in open interest is typically seen as a positive sign, it could also be a warning of an upcoming shift in market direction.

In the end, this new measure could make the Ethereum market more complex. With regulatory challenges and doubts about its ability to handle large volumes of transactions, the cost of Ethereum may follow an intricate path.

Ethereum Open Interest Reaches New High

The open interest figure is a useful tool for monitoring the quantity of ongoing contracts in a given market. Lately, there have been significant market conditions and heightened institutional demand leading to new highs in Ethereum futures open interests, surpassing previous records established during the 2021 bull run.

Based on Coinglass’ statistics, Ethereum futures open interest reached an all-time high of $14.11 billion on March 15. This development wasn’t unexpected given the robust buying pressure from bulls in the preceding days, which propelled Ethereum’s price above $4,000 for the first time in two years.

Despite Ethereum dropping in price and currently trading below $3,600 after hitting $4,000, its total open interest on contracts has remained near its all-time high. This led to a surge above $14.10 billion again on March 28. Furthermore, the open interest weighted average rose to 0.0462%, suggesting an uptick in demand for leveraged long positions on Ethereum.

Approximately 55% of the $4.55 billion in Ethereum futures trading took place on Binance. Bybit and OKX followed closely with $2.39 billion and $1.94 billion in trades respectively. Notably, CME’s Ether futures saw a significant increase to $1.3 billion. At present, the CME’s Ether futures amount to $1.31 billion, demonstrating the continued optimistic stance of institutional investors.

What’s Next For ETH?

Since the start of this week, Ethereum has remained stable without significant changes in value, recording a 0.78% increase over the past seven days. The focus is currently on rumors of the SEC examining Ethereum’s security classification. The crypto industry eagerly anticipates an official decision, akin to the one issued in the Ripple case, that will bring much-needed clarity to the regulatory landscape.

Currently, investors are keeping an eye on the SEC’s verdict concerning the Spot Ethereum ETF applications in the United States. A Bloomberg expert assesses that the chances of acceptance stand at approximately 25%.

Brace For Market Impact: Ethereum Open Interest Has Reached A New All-Time High

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2024-03-29 17:10