Glassnode, a crypto analytics firm, says the Ethereum futures market is still running hot, even after a recent big shake-up.
Ethereum Open Interest Remains High
Glassnode’s latest report shows that despite a significant drop in price and a wave of liquidations, Ethereum’s open interest (the total value of outstanding futures contracts) remains above average. They tweeted about a massive $76.4 million in ETH long liquidations, with a whopping $55.8 million wiped out in just one hour—the second largest single-hour drop in a year!
[Insert Image of Glassnode’s chart showing ETH long liquidations here]
This massive liquidation event led to a significant decrease in open interest, dropping from $20.5 billion to $15.9 billion. That’s a $4.6 billion decrease! However, even with this drop, the open interest is still 22% higher than the one-year average of $13 billion.
[Insert Image of Glassnode’s chart showing Ethereum Open Interest here]
What Does This Mean?
This high open interest suggests that leverage in the Ethereum futures market is still pretty high. Historically, this kind of overheated market often leads to more price volatility.
The Price Action
Ethereum briefly dipped to around $2,100 before recovering to roughly $2,800.
The Bottom Line
Even after a major correction, the Ethereum futures market remains significantly overleveraged. This could mean more price swings are on the horizon for ETH.
