Ethereum Open Interest Drops 40% In August Whats Happening?

Several large-cap assets, including Bitcoin and Ethereum, struggled to make a mark in the past week, as the general market suffered a steep downturn in prices. According to various analyses, the market was negatively impacted by some recent macro developments in different countries. This significant decline has had a widespread effect on the market sentiment, with most investors now treading cautiously. This can be seen with the recent drop in Ethereum open interest, which could hold serious implications for the price of ETH. Ethereum Open Interest Declines By $6 Billion Impact On Price? According to the latest report by blockchain analytics platform CryptoQuant, the Ethereum open interest has fallen by more than 40% (approximately $6 billion) in the month of August. The open interest metric refers to an indicator that measures the total number of derivatives positions of a cryptocurrency (ETH, in this case) currently open on all centralized exchanges. Related Reading: More Pain Ahead: Analyst Warns Of Imminent Bitcoin Plunge Below $54,000 To Fill CME Gap An increase in this indicators value implies that investors are opening up new positions in the futures and options market at that given time. It basically indicates that investors are pouring money into ETH derivatives at the time. When the metric falls, on the other hand, it means that derivatives traders are closing their positions or getting liquidated in the market. As shown in the chart above, the Ethereum open interest has been in a downward trend since the start of August, bottoming out on Monday following the general market downturn. According to data from CryptoQuant, the open interest of ETH stands at around $7.67 billion, as of this writing. Although it has demonstrated some good signs of recovery in the past day, a low open interest does not look healthy for the Ethereum price especially if viewed from a historical standpoint. Decreased positions in the derivatives markets could cause a fall in liquidity, which could lead to substantial price fluctuations due to market inefficiency. At the same time, the falling open interest could dampen volatility in the Ethereum market in the short term, especially as fewer investors are betting on the ETH price. A low volatility suggests that the price of Ethereum might not witness any large movement any time soon. ETH Price At A Glance As of this writing, the price of Ethereum continues to hover around the $2,600 mark, reflecting an almost 4% decline in the past 24 hours. According to data from CoinGecko, the altcoins value is down by more than 13% in the last seven days. Related Reading: XRP Has Surpassed Bitcoin, Ethereum, And Solana Combined In This Metric Featured image from Unsplash, chart from TradingView

View Details

Altcoin Season Soon? Quant Says This Ethereum Pattern Could Suggest So

A quant has explained how a pattern currently forming in the Ethereum Open Interest could imply the altcoin season is coming “sooner than expected.” Altcoin Season May Be Approaching Soon Based On Ethereum Pattern In a CryptoQuant Quicktake post, an analyst has discussed about why an altcoin season may be coming soon for the cryptocurrency sector, based on a trend taking place in a couple of Ethereum and Bitcoin indicators. The first metric of relevance here is the “Open Interest,” which keeps track of the total amount of derivatives positions related to a given asset currently open on all centralized exchanges. Related Reading: Shiba Inu One Of The Most-Traded Tokens By Whales, Data Shows When the value of this metric goes up, it means the speculators are opening up fresh positions for the coin right now. On the other hand, a decline implies the users are either closing up their positions of their own volition or getting forcibly liquidated by their platform. Now, here is a chart that shows how the trend in the Open Interest has compared between Bitcoin and Ethereum over the past year: As displayed in the above graph, the Bitcoin Open Interest has been moving more or less sideways recently, while at the same time, the metric has registered growth for Ethereum. This would suggest that ETH has been seeing more appetite for derivatives market contracts than the original cryptocurrency recently. One of the driving factors behind this could be the news cycle related to the approval of the spot exchange-traded funds (ETFs) for the asset. In the same chart, the quant has also attached the data for another indicator: the Estimated Leverage Ratio (ELR). This metric measures the ratio between the Open Interest and the Exchange Reserve for any asset. The latter is naturally the total amount of the coin that’s currently sitting in the wallets of all centralized exchanges. The ELR basically provides us with information about the amount of leverage that the average user in the derivatives market is opting for right now. From the graph, it’s visible that this ratio has seen a surge for Ethereum recently but has been showing flat action for Bitcoin. Thus, it would appear that not only has ETH been seeing more speculative interest than BTC recently, but also these users opening contracts are going for higher risk as they are taking on more leverage. Related Reading: Analyst Says Only A Matter Of Time Before Bitcoin Flies Past ATH The analyst believes that the fact that Ethereum has overtaken Bitcoin in these indicators could be a potential sign that an altcoin season may be approaching soon. “If Ethereums price continues to consolidate in the current range, its very possible that the altcoin season will start sooner than expected,” notes the quant. It now remains to be seen how things play out in the market in the near future, given this shift of trend. ETH Price After seeing a slowdown earlier, Ethereum has been back on track in the past couple of days as its price has now climbed back above the $3,900 level. Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com

View Details

Why is Ether (ETH) price up today?

Ether price is up today as interest in the spot ETH ETF in Hong Kong and investors expectation of a looser monetary policy in the U.S. boosted sentiment.

View Details

Ethereum To See Fresh Move Soon? What Futures Data Says

Data shows the Ethereum Open Interest has been trading at relatively low levels recently. Heres what this could mean for the assets price. Ethereum Open Interest Has Been Moving Sideways Since Its Plunge As explained by an analyst in a CryptoQuant Quicktake post, the ETH Open Interest has followed a similar trajectory as the price [...]

The post Ethereum To See Fresh Move Soon? What Futures Data Says appeared first on Crypto Breaking News.

View Details

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

Ethereum has, for the most part, established a foothold above the $3,500 price level throughout the week as investors continue to anticipate a return to the $4,000 mark. Interestingly, the optimism has seen the open interest of Ethereum surging to new highs. The surge in open interest, although a bullish sentiment indicator, can also serve as a bearish signal of an impending change in market trend.  Ultimately, this metric added to the current dynamics of the Ethereum ecosystem, including regulatory uncertainty and scalability concerns hinting at a complicated price trajectory for the price of Ethereum. Ethereum Open Interest Reaches New High Open interest is an efficient method for tracking the total number of open positions in a particular contract. Recent market dynamics and institutional investor interest have seen the total open interest in Ethereum futures surging above records set in the 2021 bull market phase. Related Reading: The Bulls Are Back: Spot Bitcoin Inflows Surge With New Records According to data from Coinglass, the open interest on Ethereum futures, which has been on a surge since February 5, recently set a new high of $14.11 billion on March 15. This wasn’t particularly surprising, as a strong buying momentum from the bulls in the prior days saw the price of Ethereum surging past the $4,000 mark for the first time in two years.  However, Ethereum has since reversed from the $4,000 price level and is currently trading below $3,600. On the other hand, the total open interest on Ethereum contracts has maintained around its all-time high level, which allowed it to cross over $14.10 billion again on March 28. The open interest weighted average also went up to 0.0462%, indicating an increase in the demand for leveraged ETH long positions. The majority ($4.55 billion) in the Ethereum futures market were registered on cryptocurrency exchange Binance. Bybit and OKX came in second and third, with $2.39 billion and $1.94 billion respectively. Interestingly, CME’s Ether futures also surged to $1.3 billion. At the time of writing, the CME’s Ether futures now sit at $1.31 billion, reiterating the committed bullishness among institutional investors. Whats Next For ETH? Ethereum has been trading flat since the beginning of the week and is currently on a 0.78% gain in the past seven days. All eyes are now on reports of the SEC looking into Ethereum’s security status, the industry awaits an official ruling similar to the one that was handed down in the XRP case that will finally provide clarity to the regulatory landscape. Related Reading: Shiba Inu Going To $0.0001: Crypto Analyst Reveals What Will Drive The Rally At the same time, investors continue to await the SEC’s decision regarding the applications of Spot Ethereum exchange-traded fund (ETF) in the US. According to a Bloomberg senior analyst, the likelihood of approval is only 25%. ETH price drops to $3,500 | Source: SHIBUSD on Tradingview.com Featured image from Money, chart from Tradingview.com

View Details

Ethereum Breaks $2,900, But Watch Out For Futures Overheating

Ethereum has broken beyond the $2,900 level during the past day, but data shows the futures market may be starting to become overheated. Ethereum Has Now Broken Through The $2,900 Level While Bitcoin has slumped to an overall sideways trajectory recently, Ethereum appears to have decided to pick a path of its own, as the [...]

The post Ethereum Breaks $2,900, But Watch Out For Futures Overheating appeared first on Crypto Breaking News.

View Details

Ethereum Open Interest Hits Record High Of $17 Billion Bearish Or Bullish For ETH Price?

The price of Ethereum has been on a remarkable run in the past week, returning above the $3,500 level for the first time since July 2024. This single-week performance represents a change in the fortunes of the “king of altcoins,” which somewhat slowed down after a great start to the month of November. While the current price layout for Ethereum suggests that there is still room for upward movement, certain on-chain signals indicate that the market might be on the cusp of a pullback. One of these signals is the ETH open interest, which recently hit a new all-time high. Is ETH Price At Risk With Surging Open Interest? In a Quicktake post on the CryptoQuant platform, an analyst with the pseudonym ShayanBTC has revealed that while the Ethereum price trajectory looks bullish at the moment, investors need to tread with caution. This projection is based on the “alarming divergence” in the ETH futures market metrics. Related Reading: Toncoin Price Explodes With 17% Rally Can TON Sustain The Momentum? Specifically, the relevant futures market metric here is the open interest, which tracks the total amount of open futures or derivatives contracts of a particular cryptocurrency (ETH, in this case) in the market at a given time. It basically evaluates the amount of money being poured into Ethereum futures at every moment. According to data from CryptoQuant, the Ethereum open interest has reached a new all-time high value of $17 billion. Typically, surging open interest signals a shift in investor sentiment, with traders increasingly speculating and gearing for a potential market movement. ShayanBTC, however, noted that the notable spike in open interest was not accompanied by a new all-time high for the price of Ethereum. According to the Quicktake pundit, this divergence between the price and the open interest points to a potential increase in volatility and significant liquidation cascades. ShayanBTC added: If Ethereum’s price faces a sudden downturn or consolidation, the overleveraged positions from futures traders could trigger a wave of forced liquidations, leading to rapid price declines. As of this writing, the price of Ethereum sits just beneath $3,700, reflecting an over 3% increase in the last 24 hours. According to data from CoinGecko, the altcoin’s value is up by nearly 8% in the past seven days. Ethereum Whales Load Their Bags Fortuitously, another on-chain data has emerged to counter the bearish prognosis for the second-largest cryptocurrency. In a November 30 post on the X platform, prominent crypto analyst Ali Martinez revealed that a particular class of Ethereum large investors has been active in the market.  Related Reading: Dogecoin Price Completes First Bull Phase Similar To 2021, Heres What Comes Next Data from CryptoQuant shows that Ethereum whales holding between 100,000 and 1,000,000 coins have purchased over 280,000 ETH in the past four days. This level of buying activity from such an influential class of investor could be considered bullish for the altcoin. Featured image created by DALL-E, chart from TradingView

View Details

Ethereum Open Interest Sets New Record, Analyst Says Fireworks Guaranteed

Data shows the Ethereum Open Interest has recently observed a sharp jump to a new all-time high (ATH) of around $16.8 billion. Ethereum Open Interest Has Shot Up Recently In a new post on X, CryptoQuant community analyst Maartunn has discussed about the latest trend in the Ethereum Open Interest. The “Open Interest” here is an indicator that keeps track of the total amount of ETH-related derivatives positions currently open on all centralized exchanges. Related Reading: Glassnodes Bitcoin Seller Exhaustion Indicator Just Flashed A Signal: Bottom In? Below is the chart the analyst shared that shows this metric’s trend over the past week. The graph shows that the Ethereum Open Interest has observed a sharp increase over the past day. This means the investors have just opened many new positions on the derivatives market. Generally, the total amount of leverage in the market goes up whenever new positions pop up, so mass liquidation events can become more probable. A Mass liquidation event, popularly called a squeeze, can be a violent event where a large amount of liquidations occur simultaneously, feeding back into the price move that caused them. This provides more fuel for the move, which in turn causes even more liquidation. Ethereum has been rallying recently, so some speculative interest is normal, but the scale of the latest Open Interest increase may be concerning. The metric has increased by around 19% within a 24-hour span, reaching a new ATH of around $16.8 billion. As has often happened in history, this rapid growth in the Ethereum Open Interest could once again lead into volatility for the asset’s price. “This is guaranteed for heavy fireworks,” notes Maartunn. In theory, the volatility resulting from this increase in the indicator could take the asset in either direction. Still, since the rise has come alongside a rally in the ETH price, these positions will likely be long. Related Reading: Bitcoin Sentiment Cools Down From Extreme Greed: Can Rally Restart Now? And indeed, as an analyst pointed out in a CryptoQuant Quicktake post, the Ethereum Funding Rates have been positive recently, implying the long positions have been outweighing the short ones. Usually, a squeeze is more likely to affect the side of the market with more positions. As such, if the overheated derivatives market unwinds in a volatile storm, Ethereum may come out with a drawdown in the price. ETH Price At the time of writing, Ethereum is trading at around $3,500, up almost 7% over the last seven days. Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com

View Details