The post Ethereum (ETH) open interest on CME climbs to March levels, signals volatility ahead appeared on BitcoinEthereumNews.com.

Ethereum (ETH) is also reevaluating its climb after losing the $3,500 support level. ETH is now watched for its ETF potential and the effect of prices on the DeFi ecosystem. Based on CME futures levels, ETH may be facing more volatility.  CME futures open interest indicates how mainstream finance sees ETH. The current open interest is similar to the March levels, close to this year’s market peak. CME futures open interest continued to expand to $1.25B, suggesting that volatility may be ahead of the ETH market price.  The Binance ETH/USD perpetual derivative pair also expanded its reported volume above $1B, growing in the past week. Total ETH open interest on all Binance pairs reached $4.7B for ETH. Negative funding rates only affected Bybit and Kraken. The recent price drop also led to a dominance of long positions and a long/short ratio growth.  Read: ARK Invest Backs Out of Spot Ethereum ETF With 21Shares Despite the recent price slide, liquidations have been relatively low. DeFi overall is threatened by $1.5B in liquidable value, of which $1.1B is concentrated on Maker DAO. The latest price slide targeted liquidation levels is down to $3,400, with smaller positions down to $3,300. On the upside, more than $330M in liquidable positions can be targeted above $3,600. Multiple liquidation bands can also add to the volatility in the coming days. ETH may be facing a more volatile scenario than BTC, but it is on track to reverse some gains after the news of imminent ETF approvals. For now, ETH does not have the support of fund inflows and no reassurance of mainstream interest. Both common traders and whale wallets show bearish sentiment, turning even more bearish in the last 24 hours.  The support level at $3,300 is also closely watched for possible ETH scenarios. In the…

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Filed under: News - @ June 15, 2024 2:12 am