- Ethereum Open Interest affects ATH, but rising leverage increases the risk of competitive liquidations.
- $ 123 billion in ETH is almost a cost basis, so that the market is exposed to sentiment -driven reversations.
Is Ethereum [ETH] Skating on the edge of a knife?
While open interest has risen to register highlights-a sign of increased speculative appetite fluctuates a stunning $ 123 billion in the market capitalization of ETH now only 0-20% over the costs.
With a dense cluster of holders placed between $ 2.3k and $ 2.5k, even small price corrections could tilt large parts of the network in red.
This increases the commitment to Ethereum’s next step, because the risk of volatility in an already fragile market intensifies.
Ethereum Open Interest hits an ATH
Ethereum-Futures experience an increase in speculative activity, in which open interest rates climbs to a record high of $ 35.69 billion, per Coinglass data.
Source: Coinglass
This marks the aggressive positioning by traders who anticipate on his head. The sharp rise in the open interest rate in May has surpassed the price movement of ETH – which suggests that a growing leverage in the system.
Although this bullish sentiment can feed the rapid profit, it also increases the exposure of Ethereum to volatility.
A sudden price movement in both directions can cause tracading liquidations, making the current arrangement both promising and precarious.
Thunde winnings
According to Glass node$ 123 billion in the market capitalization of ETH is concentrated in the profit band of 0-20%, with the most acquired between $ 2,300 and $ 2,500.
This sharp increase in risk capital says that even a modest withdrawal could push a significant part of the holders into non-realized losses.
Source: Glassnode
The graph shows a swelling of this cohort in May, despite the wider rally.
In fact, the climb of Ethereum has placed an enormous amount of capital on a narrow ledge – the market exposed to fast sentiment oms when the price momentum breaks.
