Ethereum Market Observes Pileup Of Leverage As ETH Breaks $2k

Data shows a large amount of leverage has been piling up in the Ethereum futures market as the price of the crypto breaks above $2k. Ethereum Open Interest Surges To Highest Value In Last 4 Months As pointed out by an analyst in a CryptoQuant post, the ETH futures market has seen the leverage sharply going up recently. The “open interest” is an indicator that measures the total number of Ethereum futures contracts currently open in all derivatives exchanges. When the value of this metric rises up, it means investors are opening up more positions on the market right now. Since more futures positions imply that leverage is also going up in the market, such a trend can lead to higher volatility in the price of the coin. On the other hand, lowering values of the indicator suggest holders are closing up their positions at the moment. This kind of trend can result in a less volatile value of ETH. Related Reading: Bitcoin Bearish Signal: Whales With 1k-10k BTC Depositing To Exchanges Now, here is a chart that shows the trend in the Ethereum open interest over the course of 2022 so far: Looks like the value of the metric has shot up in recent days | Source: CryptoQuant As you can see in the above graph, the Ethereum open interest has observed some sharp uptrend during the past couple of weeks. The indicator has now reached a value of 7.4 billion, the highest it has seen during the last four months. However, there is a...