Summary
- It was reported that Ethereum open interest on Binance has plummeted by about 50% recently.
- According to Darkfost, traders' pessimistic stance on Ethereum has led to a decrease in open interest.
- It was pointed out that the strengthened risk aversion sentiment may lead to a continued downward trend in Ethereum prices for the time being.
It has been observed that the open interest (OI) of Ethereum (ETH) on the global cryptocurrency exchange Binance has recently plummeted.
Darkfost, a contributor to CryptoQuant, stated on the 8th, "The open interest of (Ethereum) on Binance recorded an all-time high of $7.8 billion on December 16 last year," adding, "(Now) it has decreased by more than 50%, evaporating about $4 billion in just four months." He continued, "Binance traders are generally taking a pessimistic stance on Ethereum," and "the open interest has continuously decreased, now falling below the 365-day moving average."
He pointed out that the downward trend in Ethereum prices may continue for the time being. Darkfost said, "(The decrease in open interest) suggests that the risk aversion sentiment among investors has strengthened and shows the severity of recent liquidation volumes," adding, "If this trend continues, it will still take time for Ethereum to enter a stable phase."
JOON HYOUNG LEE
gilson@bloomingbit.ioCrypto Journalist based in Seoul![[Exclusive] FSS to examine ZKsync coin that surged '1,000%' in three hours](https://media.bloomingbit.io/PROD/news/1da9856b-df8a-4ffc-83b8-587621c4af9f.webp?w=250)
