"Binance Ethereum Open Interest Surges 38% in 5 Days…Short-term Correction Possible"

YM Lee

Summary

Ethereum open interest on Binance surged 38% in just 5 days.
During the same period, the price of Ethereum rose from $2,400 to $2,879.
Experts noted that simultaneous increases in open interest and price raise the possibility of a short-term correction.

The size of open interest (OI) for Ethereum (ETH) on global cryptocurrency exchange Binance has risen by 38% in just 5 days.

On the 13th (local time), Burak Kesmesi, an analyst at the on-chain analysis platform CryptoQuant, reported, "As of June 5, Binance Ethereum open interest was only $5 billion, but as of the 10th, it had soared to $6.9 billion. During the same period, the price also increased from $2,400 to $2,879."

He added, "A simultaneous rise in price and open interest indicates increasing long positions, but if the uptrend is too steep, a price correction is likely to follow. Currently, the likelihood of a short-term price correction for Ethereum is increasing."

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