Ethereum price has recovered at the key $3.5K support level, maintaining the uptrend. However, the futures market shows a worrying divergence that could have a major impact on market momentum.

Open interest, which tracks the total number of open futures positions across all exchanges, has hit a new record high. This shows unprecedented speculative activity in the Ethereum derivatives market.

This increase occurred without a new record high for Ethereum, raising concerns about increased volatility and large liquidations. If Ethereum price suddenly drops, highly leveraged positions from futures traders could trigger a wave of forced liquidations, leading to a rapid price decline.