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Ethereum “Open Interest” Pullbacks to $11.5B, Overheated Markets Cool Off 

Published 06/21/2024, 12:10 AM
Updated 06/21/2024, 12:45 AM
© Reuters Ethereum “Open Interest” Pullbacks to $11.5B, Overheated Markets Cool Off 
ETH/USD
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  • Ethereum’s OI drops to $11.5B, indicating a market cooldown.
  • $400M of Ethereum positions liquidated since June 5.
  • SEC closes ETH 2.0 probe, Pantera Capital eyes $100M buy, showing institutional interest.

Ethereum, the second-largest cryptocurrency, is experiencing a decline in trader interest, as indicated by a dip in open interest (OI). This pullback in OI, after reaching its peak, suggests that the market is cooling down. According to CryptoQuant’s data, Ethereum’s OI has fallen from $13 billion to $11.5 billion, signaling a decrease in market activity.

Open interest represents the total value of outstanding derivative contracts (long and short positions) in the market. A higher OI typically suggests a more active market with increased trading activity and potential volatility. Ethereum’s OI reached an all-time high of about $9.5 billion during the previous bull run when the price peaked at $4,891 in 2021.

Despite not surpassing this performance in the current cycle, the leading altcoin saw its OI climb to $13 billion, setting a new record. This led to an overheated market for Ethereum.

Following the opening of a large number of leveraged positio…

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