Ethereum News Today: Institutional Adoption Booms as Ethereum's Price Falters

Ethereum's open interest has declined to 11.59 million ETH, the lowest level since May 2025, as traders on the Chicago Mercantile Exchange (CME) overtook Binance to become the largest Ethereum derivatives market Ethereum Price Forecast: ETH open interest declines as CME overtakes Binance to become largest futures market^[1]. The CME's dominance reflects growing institutional demand, with U.S. spot Ethereum ETFs holding 6.79 million ETH, or 5.7% of the circulating supply Ethereum Price Forecast: ETH open interest declines as CME overtakes Binance to become largest futures market^[1]. Meanwhile, Ethereum's price has fallen to $4,105, struggling to hold the $4,100 support level after a rejection at $4,270 Ethereum Price Forecast: ETH open interest declines as CME overtakes Binance to become largest futures market^[1].

The decline in open interest follows a "leverage flush" last Friday, with total open interest dropping to 11.04 million ETH before a modest recovery. Historically, such drawdowns in leverage often coincide with cautious market sentiment and short-term price consolidation Ethereum Price Forecast: ETH open interest declines as CME overtakes Binance to become largest futures market^[1]. Profit realization has spiked, with investors booking over $800 million in gains in the past 24 hours, while whale activity remains steady, with holdings increasing by over 110,000 ETH Ethereum Price Forecast: ETH open interest declines as CME overtakes Binance to become largest futures market^[1].

Technical analysis indicates Ethereum faces critical resistance at $4,270. A break above this level could target $4,500, but failure to hold the $4,100 support might push prices toward $3,470. The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) suggest bearish momentum, with the RSI failing to confirm bullish dominance after a recent rejection at $4,270 Ethereum Price Forecast: ETH open interest declines as CME overtakes Binance to become largest futures market^[1].

The CME's growing influence is underscored by its role in facilitating Ethereum exposure through regulated futures and ETFs. This shift aligns with broader institutional adoption, as Ethereum ETFs have attracted $547 million in inflows, signaling confidence in the asset class Ethereum Price Forecast: ETH open interest declines as CME overtakes Binance to become largest futures market^[1]. However, market participants remain cautious, with liquidations totaling $240.9 million in the past 24 hours, including $150 million in long positions Ethereum Price Forecast: ETH open interest declines as CME overtakes Binance to become largest futures market^[1].

Analysts note that the CME's dominance, combined with ETF accumulation, could reshape Ethereum's market dynamics. While the current price action reflects short-term volatility, long-term fundamentals-such as Ethereum's role as a settlement layer for Layer-2 networks-remain intact Ethereum Price Forecast: ETH open interest declines as CME overtakes Binance to become largest futures market^[1].