#ETH

Ethereum derivatives market signals strong bullish momentum

Open interest in #Ethereum futures surpassed its previous ATH at $13 billion

This is an increase of over 40% in the last four months.

Such a trend suggests that market participants' sentiment favors upward price movements in the long term.

The leverage ratio of #ETH, calculated by dividing open interest by the exchange's coin reserves, also reached a new ATH, rising above +0.40 for the first time. This figure indicates a significant increase in leveraged positions, reflecting the heightened risk for investors trading ether.

Although these trends highlight positive market sentiment towards ETH, potential risks should be kept in mind.

Increased leverage and dominance of long positions can raise the likelihood of long position squeezes and sharp declines.

But demand in the spot range of 2800 – 3000 $ is currently impressive and should mitigate a potential dump.