Record data in Ethereum (ETH): How does it affect the price?

Ethereum's ($ETH ) open interest has reached an all-time high.

Known as the leader of altcoins, Ethereum (ETH) reached an important milestone when it was priced at $ 3,700. Open interest (OI), one of ETH's important metrics in derivatives markets, has reached an all-time high.

Ethereum's open interest has broken a record by exceeding $ 17 billion. The increase in open interest means that more investors are taking positions in futures or options contracts and that there is more capital inflow into the market.

In addition, the funding rate, another metric used in derivatives markets, has also shown a significant increase in recent days. The increase in the funding rate generally indicates that the market is optimistic and investors are willing to pay more to maintain their long positions.

However, although this situation gives the perception that prices will continue to rise at first glance, the real situation may be different. When historical data is examined, it is seen that sharp increases in open interest usually result in price corrections.

In similar cases in November 2021 and June 2024, increases in open interest indicated that the market had reached its peak.

In order to understand whether Ethereum had reached its market peak, on-chain data was examined in detail. According to CryptoQuant's data, ETH's reserves on exchanges are increasing. This indicates that selling pressure is increasing. However, the stochastic oscillator was seen to be in the overbought region. This indicates that sales may increase and price corrections are possible.

In addition, the seller exhaustion index has also reached its peak. According to historical data, the $ETH price has usually experienced a sharp decline after the periods when this metric peaked. On the other hand, the Relative Strength Index (RSI) has not yet entered the overbought region. This indicates that there is still room for further purchases and that Ethereum can maintain its upward momentum.