On March 23, the price of Ether (ETH) surged to $4,000, briefly exceeding $3,890 before dropping due to $46.58 million in leveraged long liquidations. This rally led to an all-time high open interest of $17.09 billion in Ethereum futures on May 28.
Similarly, Ethereum futures open interest remains strong at $16.1 billion as the consolidation above $3,700 continues, as per data from Coinglass.
In addition, Chicago Mercantile Exchange (CME) options trading volumes for Ether futures hit a record high in May, reaching $931 million, a 115% increase from April’s $615.75 million, according to a CCData report released on June 5.
Analysts suggest that the rising trading activity in Ether’s derivatives market reflects growing institutional interest in ETH following the approval of spot Ethereum ETFs on May 23. Wintermute analysts noted that Ether’s CME open interest approaching all-time highs indicates institutional interest in ETH/BTC trade ahead of S-1 filings and a potential launch.
Moreover, the surge in Ether’s options implies a rise in implied volatility due to expectations of significant price movements. Market participants anticipate increased volatility in Ether’s price as the launch of spot Ethereum ETFs approaches.
Similarly, perpetual contracts, including inverse swaps, show a bullish sentiment. These derivatives, recalculated every eight hours, exhibit strong demand for leveraged long positions, as shown by Coinglass data indicating an increase in ETH funding rates to 0.0175, equivalent to 0.367% per week.
As of the time of writing, Ethereum’s price stands at $3,843, up 1.2% in the last 24 hours, according to CoinGecko data.
This article is for informative purposes only and does not provide investment advice. Readers are advised to conduct their own research before making any financial decisions.