Ethereum Futures Open Interest Hits Record $32.5 Billion as Short Selling Pressure Builds
Summary
- Ethereum open interest (OI) in the cryptocurrency futures market rose to about $32.5 billion, setting a record high.
- Even as the spot price plunged more than 4%% and fell below the $2,000 level, rising open interest signaled aggressive leveraged short selling.
- With $2.07 billion leaving US spot Ethereum exchange-traded funds (ETFs) this month alone, questions are growing over whether Ethereum's ecosystem advantage will be reflected in token value.
Forecast Trend Report by Period
Ethereum open interest in the cryptocurrency futures market has climbed to a record high.
BlockBeats reported on May 28 that open interest in Ethereum futures has increased for three straight days. The total reached about $32.5 billion, marking a fresh all-time high.
Ethereum prices moved the other way. The token fell more than 4% from a day earlier on May 28, dropping below the psychologically important $2,000 level. Rising open interest as spot prices fall signals aggressive leveraged short selling in the market, BlockBeats reported.
Institutional flows also show mounting pressure. According to SoSoValue, US spot Ethereum exchange-traded funds have recorded $2.07 billion of outflows so far this month.
House of Chimera, a Web3 research firm, said the market is questioning whether Ethereum's lead in DeFi, real-world assets and tokenization can be reflected in the token's value.
JOON HYOUNG LEE
gilson@bloomingbit.ioCrypto Journalist based in Seoul
