Ethereum (ETH) Open Interest Signals Rising Volatility Risks!
Over the past 24 hours, Ethereum price has rebounded towards the key support level of $3,500. However, while price action points to upside potential, futures market indicators show a surprising divergence in market sentiment. The open interest indicator has hit a record high. This spike indicates unprecedented levels of speculative activity in the Ethereum derivatives market. Furthermore, the surge in open interest occurred without the ETH token price rising. This has raised concerns about increased volatility and a possible cascade of liquidations. It’s worth noting that if the price of Ethereum suddenly drops or crashes significantly, over-leveraged positions could trigger a wave of forced liquidations, causing the price to drop significantly.
