The post Ethereum Open Interest Drops 40% In August – What’s Happening? appeared on BitcoinEthereumNews.com.

Several large-cap assets, including Bitcoin and Ethereum, struggled to make a mark in the past week, as the general market suffered a steep downturn in prices. According to various analyses, the market was negatively impacted by some recent macro developments in different countries. This significant decline has had a widespread effect on the market sentiment, with most investors now treading cautiously. This can be seen with the recent drop in Ethereum open interest, which could hold serious implications for the price of ETH. Ethereum Open Interest Declines By $6 Billion — Impact On Price? According to the latest report by blockchain analytics platform CryptoQuant, the Ethereum open interest has fallen by more than 40% (approximately $6 billion) in the month of August. The “open interest” metric refers to an indicator that measures the total number of derivatives positions of a cryptocurrency (ETH, in this case) currently open on all centralized exchanges. An increase in this indicator’s value implies that investors are opening up new positions in the futures and options market at that given time. It basically indicates that investors are pouring money into ETH derivatives at the time. When the metric falls, on the other hand, it means that derivatives traders are closing their positions or getting liquidated in the market. As shown in the chart above, the Ethereum open interest has been in a downward trend since the start of August, bottoming out on Monday following the general market downturn. According to data from CryptoQuant, the open interest of ETH stands at around $7.67 billion, as of this writing. Although it has demonstrated some good signs of recovery in the past day, a low open interest does not look healthy for the Ethereum price — especially if viewed from a historical standpoint. Decreased positions in the derivatives markets…

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Filed under: News - @ August 11, 2024 2:20 am