Ethereum Open Interest Drops 19% Amid Rising Geopolitical Tensions

Investor demand for Ethereum increased recently, pushing its price towards $3,000. However, geopolitical tensions, particularly Israel's airstrike on Iran, led to a significant decline in crypto markets.

Ethereum lost about 6% of its value in 24 hours following the escalation.
On-chain analyst Amr Taha noted a 19% drop in Ethereum's Open Interest (OI) on Binance, indicating reduced investor confidence.
A falling OI is viewed as a bearish signal, reflecting panic selling as traders exited long positions.
Simultaneously, there was a notable outflow of 7,000 BTC from Coinbase, suggesting large investors may be shifting capital back into Bitcoin.
This trend may negatively impact ETH, as it indicates capital rotation towards Bitcoin.

The current price of ETH is approximately $2,546, marking a nearly 4% decline over the past day.