Data shows the Ethereum Open Interest has shot up alongside the asset’s recovery surge, a sign that chaos could be in store.
Below is the chart shared by Maartunn, showcasing the recent trend in the Ethereum Open Interest.
From the graph, it’s apparent that the Ethereum Open Interest has just gone up by around $1.9 billion and reached the $24.5 billion mark. This corresponds to a notable increase of 8.5%.
The jump in derivatives market positions has come alongside a price rise for ETH. Generally, sharp price action like a rally attracts the attention of the masses, so speculative activity can note an uptick. The scale of the Open Interest increase, however, does stand out this time around.
The cryptocurrency’s price has gone up by 4% during the past day, which, while certainly not small, is only half the rise in the Open Interest. This would indicate particularly intense speculation in the market.
Considering how strong the climb in the Open Interest has been relative to the asset’s price, it’s possible that sharp action could be ahead for ETH this time as well.
As is visible above, liquidations related to Ethereum have totaled at $119 million in this period. This makes ETH the coin with the largest derivatives flush, far ahead of Bitcoin’s $32 million in second place. Naturally, the majority of the liquidations have involved short positions.
In total, the cryptocurrency sector as a whole has seen $284 million in liquidations during the past day, $233 million of which have come inside the past twelve hours alone.
With its latest rally, Ethereum has broken away from the rest of the market and recovered above the $3,820 mark.
