Ethereum Open Interest Explodes to a New All-Time High of $23B, ‘Guaranteed for Heavy Fireworks’

Data shows that open interest on Ethereum derivatives contracts has recently exploded upward to a new all-time high of $23 billion

open interest on Ethereum derivatives contracts has recently exploded upward to a new all-time high, an upward move that one analyst suggests is “guaranteed for heavy fireworks.”

Data from CoinGlass shows that there are now $23 billion worth of ETH futures open interest, an indication of the growing number of positions being created on the cryptocurrency as fresh capital enters the market.

This influx of capital could lead to increasing volatility in the near future by amplifying potential price movements, hence its potential to lead to “heavy fireworks,” according to CryptoQuant analyst Maartunn.

The rise in open interest comes at a time when the price of Ethereum has underperformed significantly compared to that of Bitcoin, with data from CryptoCompare showing that while the flagship cryptocurrency is up more than 156% over the last 12-month period, ETH only rose 77%.

As reported by CryptoGlobe, a massive Ethereum whale that had accumulated nearly 400,000 ETH when the second-largest cryptocurrency by market capitalization was trading at around $6 per token recently resumed selling.

According to data shared by on-chain analysis firm Lookonchain, the whale acquired a total of 398,889 ETH for around $2.4 million between January and March 2016. The tokens are now valued at over $1.34 billion following Ethereum's price surge over the last eight years.

The cryptocurrency is currently trading at $3,600 per token and has a market capitalization of $433 billion. According to Lookonchain, the massive Ethereum whale had remained largely dormant for over eight years before resuming sales on November 7.

While Bitcoin is trading near a record, Ethereum is still far from its all-time high of nearly $4,600 in 2021. As reported by CryptoGlobe late last month, the amount of ETH held on cryptocurrency exchanges has dropped by around $750 million following massive withdrawals of the second-largest cryptocurrency by market capitalization from these platforms.