- Ethereum Open Interest has surged to a record $35.69 billion, signaling strong bullish sentiment but also heightened risk due to increased leverage.
- With $123 billion in ETH near its cost basis, even minor price dips could trigger sharp market reactions and potential liquidations.
Ethereum Hits Record High Open Interest — But at What Cost?
Ethereum’s futures market is heating up as Open Interest surges to a new all-time high (ATH) of $35.69 billion, according to CoinGlass. This milestone reflects growing trader confidence, but also suggests that the market is steeped in leverage — a double-edged sword for ETH’s near-term price action.
While the climb signals bullish enthusiasm, it also raises the risk of sharp liquidations if prices dip unexpectedly. With traders aggressively positioned, Ethereum is skating on thin ice.
$123 Billion in ETH at Risk Near Cost Basis
According to on-chain data from Glassnode, approximately $123 billion worth of Ethereum’s market cap is currently sitting within just 0-20% profit — mostly accumulated between $2,300 and $2,500. This concentration creates a pressure point: even slight price declines could send many holders into the red, sparking fear and potential sell-offs.
This vulnerability becomes more concerning considering ETH’s recent consolidation just below the $2,700 mark. A failure to break out convincingly above this level could lead to a sharp retracement, targeting the dense support cluster in the $2,500 zone.
Momentum Signals Mixed: Is ETH Running Out of Steam?
As of press time, Ethereum was trading near $2,670, with mixed technical signals. The RSI stands at 68.93 — teetering near overbought levels — which may hint at buyer fatigue. Meanwhile, the MACD line remains in bullish territory, but the flattening histogram suggests momentum could be losing steam.
Price action shows ETH cooling off after a sharp rally earlier in May, setting the stage for either a breakout or a correction. If bulls fail to muster enough strength to push above $2,700, a drop toward $2,500–$2,550 could follow — a region that also happens to be home to a large cohort of cost-sensitive investors.
Verdict: Bullish Setup or Bear Trap?
Ethereum’s rally and record-breaking Open Interest highlight the growing optimism in the market. But with high leverage and a dense cluster of at-risk capital, the setup remains fragile. Whether ETH can break higher or succumbs to liquidation-driven pressure will shape the next big move.
