$ETH Although ETH futures longs (buyers) and shorts (sellers) are always matched, a higher notional value increases the risk of liquidations exponentially. For instance, if longs are utilizing 10x leverage, those contracts will typically be forcefully liquidated if Ether’s price declines by 10%.

A similar scenario can occur if Ether’s price surges by 10% and shorts are excessively leveraged. In such cases, exchanges will automatically buy ETH futures to mitigate their risk and close positions that lack sufficient margin deposits. As a result, the $16.8 billion open interest in Ether’s futures market poses a risk for potential buyers, thereby keeping the ETH price below $3,900.