On Sunday Ethereum price It has re-tested the $3,000 level after trading below the level over the past few days due to volatile market conditions. ETH price may be gradually regaining upward momentum, but it is still under downward pressure from other aspects such as open interest (OI).
Sharp decline in Ethereum open interest
In the current unstable cryptocurrency environment, Ethereum derivatives market We are informing you of key indicators. This important signal comes from ETH public interest, which has seen a significant decline over the past few months. according to According to research by Alphractal, an advanced investment and on-chain data analytics platform, the indicator has fallen by half, or 50%, since August this year.
A significant drop in this indicator is a clear indication that a trader's positioning and risk appetite have changed noticeably. The sharp collapse following high leverage and aggressive speculation signals positions being liquidated, exposures being reduced and momentum cooling across the futures market.
Alphractal emphasized the following points: Ethereum Open Interest It is valued at about half its August 2025 price, suggesting that market risk has declined sharply. These movements point to institutional and large whale holders closing leveraged ETH positions. The exodus of large investors shows that they are reducing their exposure and speculative pressure.
ETH’s public interest in cryptocurrency exchanges has also fallen sharply. After examining the distribution of Ethereum open interest by exchange, Alphractal announced that the world's largest exchange recorded a 31% decrease to $7.64 billion. Binance.
Gateio's open interest decreased 15% to $3.72 billion, while HTX (formerly House) decreased 12.65% to $3.12 billion. Additionally, Bybit decreased 10.25% to $2.53 billion, HyperLiquid decreased 10.18% to $2.51 billion, and Bitget decreased 7.25% to $1.79 billion.
With open interest on the exchange decreasing, this tells a compelling story about the current market structure. This explains the strong deleveraging across the world. Ethereum Explosive market moves are unlikely in the short term.
Typically, a more cautious and protective mood signals a consolidation or preparation phase for the next trend leg. However, sharp declines in open interest often precede significant structural changes, such as historically healthy reversals or low-leverage downside continuations.
ETH withdrawals surge on cryptocurrency exchanges
The drop in Ethereum's open interest comes with a large decline. ETH supply On cryptocurrency exchanges. Current ETH withdrawals are reached It is the lowest level since 2016, reflecting growing trader caution and easing short-term selling pressure.
like More ETH leaving exchanges If placed in long-term storage, the liquid supply will continue to decrease. Reduced supply strengthens ETH's volatility while also increasing price pressure.
Featured image from iStock, chart from Tradingview.com
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