ETH Futures Open Interest Reaches Record High, Surpassing $41 Billion

Ethereum (ETH) is not only witnessing a price surge but is also becoming the focal point of a significant derivatives market. Recent data indicates that the open interest (OI) for ETH futures has reached an unprecedented level, exceeding $41 billion.

This achievement aligns with Ethereum’s ability to break through critical resistance thresholds, greatly surpassing Bitcoin (BTC) in the volume of derivatives trading.

Insights from Derivatives Data

As reported, Ethereum’s futures OI increased by 6.14% in the last day, bringing it to $41.66 billion. This represents a consistent upward trajectory that began in early May, when the OI was just over $21 billion. Noteworthy levels previously reached include $37.66 billion on June 10 and $35.87 billion on June 3.

This latest increase is part of a broader trend. In the past 24 hours, the volume of ETH derivatives surged nearly 33% to reach $109.28 billion, outpacing Bitcoin’s $77.22 billion during that same timeframe.

Market leader Binance accounted for most of this activity, showing $7.59 billion in ETH OI and $27.88 billion in trading volume. Following Binance, Gate had $5.71 billion in OI, while Bitget and Bybit maintained OIs of $4.33 billion and $3.90 billion, respectively.

The long-to-short ratio on Binance stood at 1.20, indicating a positive market sentiment, with leading traders holding predominantly long positions, reflected by a position ratio exceeding 3.0.

However, this high leverage has introduced some volatility. In the recent past, $124.5 million worth of ETH positions were liquidated, with $77.6 million in shorts and $46.9 million in longs, underscoring the inherent risks in such aggressive trading practices.

Price Movements Reflecting Leveraged Positions

This activity is occurring alongside a notable price increase for Ethereum, the second-largest cryptocurrency by market capitalization. It recently reached a peak of $2,822 on June 11, marking its highest level in 15 weeks and breaking through the critical $2,700 resistance barrier, paving the way for a potential move toward the psychological $3,500 level.

At this time, ETH was trading approximately at $2,766, reflecting a 4.7% increase over the past week, marginally outperforming the broader cryptocurrency market, which had risen by 4.5% in the same period.

The upward momentum of this altcoin is influenced by more than just speculative fervor. Observers have pointed to crucial elements such as Vitalik Buterin’s newly introduced scaling strategy and clearer regulations concerning staking and decentralized finance (DeFi) from regulatory authorities, attributing to Ethereum’s enhanced performance.