In recent days, there has been a surge in interest in Ethereum.
The majority of it has resulted from the digital asset’s price decrease, which has allowed investors to enter at a significantly cheaper cost. The emergence of Ethereum-denominated open interest is a good example of this interest. This has climbed considerably in the previous week. Although two important Ethereum price indicators have yet to turn negative, it will not take much for ETH to go below $1,000. Managing finances has been at the forefront of this rise for the most part. The Ethereum open interest has been steadily increasing for the greater part of a month.
This is when the ETH-denominated open interest begins to improve. Last weekend, open interest in Ethereum futures jumped from 2.4 million ETH to 3.3 million ETH. It was one of the most significant rises in open interest over the course of three days. This sharp surge is said to have resulted from funds attempting to take advantage of the stETH and ETH peg’s chance. The majority of the investors were looking to short ETH futures, which would offer coverage for their stETH exposure.
Ethereum Prices Could Drop Well Below $1000
The increase in open interest, however, would not endure. The Ethereum-denominated open interest, which had been rising, suffered a big drop as the weekend came to a close. In the span of a day, it lost roughly 400,000 ETH, bringing open interest down to 2.9 million. Even if it is a higher low. In the previous several months, ETH’s influence over the crypto market has increased. However, given the decrease that has occurred since then, maintaining this position would be a far more difficult task. Bitcoin had begun to cut into the market share of altcoins like ETH, causing their prices to plummet.