Ethereum News Today: Ether Futures Open Interest Hits $60.8 Billion as ETH Price Rises 51% in 30 Days

Ether futures open interest has surged to a record $60.8 billion as Ethereum (ETH) reached $4,518, driven largely by price appreciation rather than increased demand for leveraged long positions [1]. This increase follows a 51% rise in ETH’s price over the past 30 days but contrasts with open interest in ETH terms, which remains 11% below its peak of 15.5 million ETH on July 27. The rally, while notable, appears to be more a function of nominal valuation growth than a surge in speculative positioning [1].

Derivatives data suggests a subdued appetite for leveraged bullish exposure despite the strong spot price performance. The annualized premium for ETH perpetual futures is currently at 11%, which is neutral compared to historical levels above 13% that indicate strong demand for leveraged longs [1]. Monthly futures, which are typically more reflective of institutional activity, trade at a 5% to 10% annualized premium. These metrics imply that aggressive traders remain cautious, despite a 32% increase in ETH’s price over the past ten days [1].

Ethereum’s ecosystem faces additional challenges as major institutions and traditional finance (TradFi) firms explore independent layer-1 blockchain solutions rather than building on Ethereum’s layer-2 infrastructure [1]. Stripe, Circle, Tether, and JPMorgan have all launched their own blockchain projects, seeking control and customization. This trend underscores a growing preference for proprietary infrastructure among enterprises, particularly for tokenized assets that require less decentralization to function effectively [1].

On-chain metrics also paint a less optimistic picture of Ethereum’s vitality. The total value locked (TVL) on the Ethereum network has declined by 7% over the past 30 days, dropping to 23.3 million ETH from 25.4 million ETH a month ago [1]. Weekly base layer fees have also fallen by 27% to $7.5 million, lagging behind competitors like Solana ($9.6 million) and Tron ($14.3 million). These figures highlight a broader challenge for Ethereum: maintaining relevance in a rapidly evolving decentralized finance (DeFi) landscape [1].

The sustainability of the current ETH price rally remains uncertain. While spot exchange-traded fund inflows reflect growing institutional interest, the lack of robust on-chain activity suggests that enthusiasm may be outpacing actual usage [1]. Traders are watching key levels, such as $4,500 and $6,000, where large liquidation risks could emerge if the price experiences a sharp correction [2]. Historically, sharp bull runs have often been followed by short-term pullbacks, which serve as tests of market conviction [1].

As the market continues to evolve, investors will need to monitor both price action and on-chain fundamentals to gauge whether Ethereum can maintain its upward momentum. The growing open interest in futures contracts indicates that market participants are preparing for volatility, but whether this translates into sustained bullish momentum remains to be seen [1].

Source: [1] Ether futures open interest hits all-time high as ETH price tops $4.5K — Will it last? (https://coinmarketcap.com/community/articles/689b9d151a035523f370bf74/)

[2] LIQUIDATION next TARGET Billions kwik (https://www.facebook.com/groups/Multiply.Bitcoin/posts/4140****99531568/)