Ethereum Futures Open Interest Hits $20.8B, Signaling Bullish Momentum

• An analysis by CryptoQuant indicates that long-position traders are in the driver’s seat.
• The futures open interest in Ethereum finally surpassed $20 billion, a key milestone.

With a 12% increase to a record high of $20.8 billion on Friday, the futures open interest in Ethereum may be indicating positive momentum in the derivatives market. According to data from CMC, Ethereum has risen 7.31% in the last 7 days, trading at $3,279 at the time of writing.

Ethereum has seen record amounts of open interest, a measure of the total number of outstanding contracts in a derivatives market. Experts say that the increased optimism among derivatives traders is responsible for this jump.

Increasing Involvement of Investors for Ethereum Derivatives

An analysis by CryptoQuant indicates that long-position traders are in the driver’s seat, because the Ethereum OI-weighted futures funding rate has surged many times in the last week, reaching fresh positive all-time highs. It is presently sitting at 0.0374%, as reported by Coinglass. This indicates a market sentiment that is supportive of price increases in the near future, the CryptoQuant research said.

The market for Ethereum futures has grown substantially over the last several months. Based on statistics from CryptoQuant, the open interest in Ethereum has increased by more than 40% in the last four months, going beyond $17 billion in May and reaching the $20 billion barrier.

An analyst from CryptoQuant said that the futures open interest in Ethereum finally surpassed $20 billion, a milestone that demonstrates the increasing involvement of investors in the market for Ethereum derivatives.

The present positive funding rates indicate that the market is tilted toward long positions, or wagers on increasing prices. The projected leverage ratio of Ethereum, which is the market capitalization divided by the amount held in exchange reserves, has also reached an all-time high of 0.40. Traders are taking more risks because they are using bigger leverage to boost their potential earnings.

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