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Ethereum Open Interest nears $20B as price soars – Is a bull run brewing?

2min Read

With $123B near cost basis, volatility risks are mounting.

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  • Ethereum Open Interest hits ATH, but rising leverage heightens risk of sharp liquidations.
  • $123B in ETH sits near cost basis, exposing the market to sentiment-driven reversals.

Is Ethereum [ETH] skating on a knife’s edge?

While Open Interest has climbed to record highs — a sign of heightened speculative appetite — a staggering $123 billion of ETH’s market cap now hovers just 0-20% above cost basis.

With a dense cluster of holders positioned between $2.3K and $2.5K, even minor price corrections could tilt large portions of the network into the red.

This raises the stakes for Ethereum’s next move, as volatility risk intensifies in an already fragile market.

Ethereum Open Interest hits an ATH

Ethereum Futures are experiencing a surge in speculative activity, with Open Interest climbing to an all-time high of $35.69 billion, per CoinGlass data.

ethereum

Source: CoinGlass

This marks aggressive positioning by traders anticipating continued upside. The sharp rise in Open Interest throughout May has outpaced ETH’s price movement — suggesting growing leverage in the system.

While this bullish sentiment can fuel rapid gains, it also increases Ethereum’s exposure to volatility.

A sudden price move in either direction could trigger cascading liquidations, making the current setup both promising and precarious.

Tenuous gains

According to Glassnode, $123 billion of ETH’s market cap is concentrated in the 0-20% profit band, with most of it acquired between $2,300 and $2,500.

This sharp increase in at-risk capital says that even a modest pullback could push a significant portion of holders into unrealized losses.

ethereum

Source: Glassnode

The chart shows a swelling of this cohort in May, despite the broader rally.

In effect, Ethereum’s climb has placed a vast amount of capital on a narrow ledge — exposing the market to swift sentiment reversals if price momentum breaks.

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Samyukhtha L KM is a Financial Journalist and Market Analyst at AMBCrypto whose work is defined by one central question: Is the latest trend in blockchain hype, or history in the making? Her expertise is built on a strong academic foundation, with a Master’s in Journalism and Mass Communication from Amity University and a Bachelor’s in Commerce from the University of Madras. This dual qualification equips her with a unique skill set: the financial acumen to dissect market mechanics and the journalistic rigor to investigate and communicate complex subjects with clarity. Samyukhtha specializes in analyzing the socio-economic impact of blockchain adoption and assessing the viability of new market narratives. This includes a focus on high-velocity, community-driven assets such as memecoins, where she evaluates sentiment and fundamentals. She is dedicated to providing readers with insightful, well-researched commentary that looks beyond immediate market moves to understand the long-term implications of decentralized technology.
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