According to the data, Ethereum’s open interest has surged alongside a surge in assets recovery. This means that chaos can be stored.
Ethereum open interest rose by more than 8%
As explained by Cryptoquant’s author Maartunn in a new post on X, Ethereum’s open interest heated up on the past days. This indicator tracks the total amount of derived locations associated with the currently open ETH in all central exchanges. Both short and long positions are considered.
Below is a chart shared by Maartunn, which presents recent trends in Ethereum’s open interest.
Looks like the value of the metric has blown up in the past day | Source: @JA_Maartun on X
From the graph, it is clear that Ethereum’s open profits have increased by around $1.9 billion to $24.5 billion. This corresponds to a noticeable increase of 8.5%.
The Derivatives market jump came along with rising prices at ETH. In general, sharp price action like rally attracts public attention, so speculative activity can be noted with rising. However, the magnitude of the open interest increase is outstanding this time.
Cryptocurrency prices have risen by 4% in the past days, which certainly isn’t small, but only half of the open profits. This shows particularly intense speculation in the market.
Historically, indicator spikes have often led to Ethereum volatility. The reason behind this is that new positions mean that sector leverage increases. This makes mass clearing events more likely and tends to be elucidated in a volatile way.
Considering how strong the increase in open profits is compared to asset prices, it is possible that ETH’s sharp action will be ahead again this time.
As Coinglass data shows, a significant amount of liquidation associated with coins has already occurred over the past 12 hours.
The breakdown of the liquidations in the cryptocurrency sector during the last 12 hours | Source: CoinGlass
As seen above, the liquidation related to Ethereum totaled $119 million over this period. This will flush ETH with the largest derivative, well above Bitcoin’s $22 million second place. Naturally, most of the liquidation involves short positions.
In total, the cryptocurrency sector has seen liquidation of $284 million over the past day, of which $233 million is in the past 12 hours alone.
The total numbers related to the latest digital asset liquidations | Source: CoinGlass
ETH Price
With the latest rally, Ethereum has been separated from other markets and has recovered to over $3,820.
The price of the asset appears to have been going up during the past few days | Source: ETHUSDT on TradingView
Dall-E, featured images from Coinglass.com, tradingView.com charts
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