In an interesting turn of events, Ethereum's Open Interest (OI) data has seen a decrease from $13 billion to $11.5 billion, providing the market with a much-needed respite. OI data, which represents the sum of long and short positions in the market, is a reliable indicator of market heat.

Previously, during the bull run, Ethereum's OI data peaked at $9.5 billion when the price hit an all-time high of $4,891 in 2021. Despite not surpassing this high in the current bull cycle, Ethereum, the altcoin leader, set a new record with its OI data reaching $13 billion, leading to market overheating.

This surge in leveraged positions was followed by swift liquidations. Since June 5, 2024, when Ethereum's OI data hit its all-time high, around $400 million worth of Ethereum positions have been liquidated, with long positions accounting for over $285 million and short positions for $113 million.

Following this significant rise in OI data, a sharp correction occurred, with OI data retracting by $1.5 billion to $11.5 billion. Whether this pullback is sufficient will be determined by market makers, but it's safe to say that the market temperature has somewhat cooled.