Ethereum’s Open Interest Hits Record High: What’s Next?

Ethereum’s Bullish Momentum

Ethereum has been holding steady above $3,500, with investors hoping for a return to $4,000. This optimism has driven up Ethereum’s open interest to record levels.

Open Interest Explained

Open interest measures the total number of open positions in a contract. Ethereum’s open interest has surged since February 5th, reaching a new high of $14.11 billion on March 15th. This surge suggests increased demand for leveraged ETH long positions.

Institutional Interest

Binance dominates the Ethereum futures market with $4.55 billion in open interest. Bybit and OKX follow with $2.39 billion and $1.94 billion, respectively. CME’s Ether futures have also seen a surge to $1.3 billion, indicating strong bullish sentiment among institutional investors.

Ethereum’s Outlook

Ethereum has been trading sideways recently, but all eyes are on regulatory developments. The SEC is investigating Ethereum’s security status, and the industry awaits a ruling similar to the one in the XRP case. Additionally, investors are watching for the SEC’s decision on spot Ethereum exchange-traded funds (ETFs) in the US, with a 25% chance of approval according to Bloomberg.