Categories: MarketsMenafn

Ethereum Open Interest Soars: Details

Ether (ETH) saw a rise in value as Ethereum’s Open Interest (OI) soared by $1.5B in the last seven days, suggesting bullish trader sentiment but also indicating potential market volatility.

Data aggregator CoinGlass shows that ETH futures OI across all exchanges totals $14.47B, up 7.43% in the last 24 hours.

ETH Futures Open Interest. (CoinGlass)

As shown in the chart above, OI peaked in late May, reaching $17.09B as ETH’s ´price reached $3.8K.

Likewise, in a report from CryptoQuant, analyst Burak Kesmeci noted that Ethereum’s open interest has grown by nearly $1.5 billion in the past three weeks.

Open interest measures the number of active long and short positions in financial instruments, with higher values indicating greater confidence in an asset’s price direction. 

Kesmeci linked the rise in open interest to the launch of US spot Ethereum ETFs, which peaked on July 23. However, OI fell by around $600 million, giving the market some relief. The analyst warned that rising leveraged trading could trigger liquidations, leading to increased market volatility.

Ethereum’s Price Outlook

The price of Ether has been struggling in the past couple of days. Today, it went from $3,257 to $3,395, a 4.23% increase. However, the coin retraced to $3.2K. 

According to CoinGecko data, ETH has plunged over 5% in the last seven days and 3.4% in the last thirty days, highlighting the extreme volatility within the market.

 

Analysts believe Ethereum ETFs will have a smaller impact on Ethereum compared to Bitcoin due to a lower multiplier effect. Nonetheless, ETH is expected to rally in the coming months as the market remains bullish.

Jerry Rolon

After working for 7 years as a Internet Marketer, Jerry now aims to explore the journalistic side of Internet. With his impeccable knowledge in this domain, he churns out some of the best news articles from the internet niche. With respect to acedamics, Jerry earned a degree in business from California State University.

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