Ethereum Open Interest Surges 8.2%, Signals Aggressive Long Positions
The recent market volatility has significantly impacted Ethereum's high-timeframe structure:
- Open Interest (OI) in Ethereum futures markets has dropped, indicating widespread liquidation.
- Daan Crypto Trades highlights that ETH's OI is now similar to levels when ETH was at $3,000, although the current price is around $4,000. This suggests a healthy market reset.
- An increase in price typically leads to rising OI as more capital flows into derivatives, but this trend can reverse depending on market conditions.
- Leverage is returning to the Ethereum market, with OI surging 8.2% within 24 hours, indicating aggressive long positions.
- Master of Crypto warns that such leverage-fueled rallies often reverse, with approximately 75% not sustaining momentum upward.
The Calm Phase Before The Next Expansion
- Despite short-term fluctuations, Ethereum's macro trend remains upward.
- Analyst EtherNasyonaL notes that ETH is retesting its demand zone and trendline, a typical bullish move in a strong market.
- Longer timeframes provide the true directional signal for Ethereum's trend.
