The post Ethereum Stays Above $3,500 as Open Interest Drops appeared on BitcoinEthereumNews.com.

We do the research, you get the alpha! Get exclusive reports and access to key insights on airdrops, NFTs, and more! Subscribe now to Alpha Reports and up your game! Go to Alpha Reports Ethereum, the leading smart-contract Layer-1 blockchain, has witnessed a sharp decrease in its open interest, which has dropped to $11.5 billion. It has dropped by $1.5 billion in the span of two weeks, according to data from CryptoQuant. Open interest in Ethereum peaked on June 5, and since then, $400M of liquidations have taken place, with long liquidations standing at $285 million. Prior to June 5, the previous all-time high in Ethereum’s open interest stood at $9.5 billion in 2021, when ETH’s price touched its all-time high of approximately $4,800. Open interest is the total number of open derivative contracts that have not yet been settled. A decrease in open interest thus bodes well for Ethereum, as market sentiment points to there being less chance of wild price swings in either direction caused by excess leverage. When those swings happen, it leads to liquidations in either direction. ETH is currently trading at $3,616, an increase of 2% in the past 24 hours. The asset clocked a moderate gain of 3.1% in the past 7 days, according to CoinGecko. Ethereum’s recent uptick can be attributed to short liquidations, as $19.33 million was liquidated in the past 24 hours, while long liquidations stood at $11.11 million, according to derivatives analytics platform Coinglass. On Tuesday, leading Ethereum developer Consensys announced that the U.S. Securities and Exchange Commission (SEC) has closed its investigation into Ethereum 2.0 without filing any charges. “This means that the SEC will not bring charges alleging that sales of ETH are securities transactions.” the company tweeted. This development comes as a positive surprise for market participants,…

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Filed under: News - @ June 21, 2024 7:16 pm