Eth Open Interest Hits Fresh High Amid Rally
Ethereum's open interest in futures has reached its highest level since January at approximately $17 billion. This surge is notable, especially considering that more than $120 million in short positions were liquidated during the same period.
Rising participation could support Ethereum's rally, according to Santiment, but this increase also brings a risk of liquidation if prices stall. Open interest refers to futures contracts that have not yet been closed, and this figure indicates investors are taking on more risk in derivatives trades.
The platform warns that while buying in the spot market remains strong, accumulating leveraged positions without price advancement could become the source of new liquidations. This risk is highlighted by the $17 billion mark, which represents a significant level not seen since January.