Ethereum (ETH) is waking up from its slumber — and it’s making a bold statement. The price of the second-largest cryptocurrency surged past $3,359, marking a three-month high and recovering from earlier losses seen in March and April. This rally comes at a time when Bitcoin’s dominance is starting to level off, prompting investors to turn their attention back to altcoins.
ETH is also gaining strength against Bitcoin, with the ETH/BTC ratio climbing to 0.029 while BTC consolidates around $118,000. This renewed interest in Ethereum has sparked hopes that a full-blown altcoin season may be approaching, or at least that the momentum could spill into the broader Ethereum ecosystem.
Open Interest Hits a Three-Year High
One of the key drivers behind ETH’s surge is a sharp increase in derivatives trading. Open interest on crypto exchanges has now exceeded $22 billion — the highest level in three years. Just months ago, this metric remained well below $10 billion, indicating low market participation.
Currently, around 65% of open interest consists of long positions, showing that traders are optimistic about ETH’s upside. The asset has pushed far above DeFi protocol liquidation thresholds, with the first major risk zones starting around $1,600. This makes most lending protocols relatively secure under current market conditions.
However, increased open interest also raises the risk of large-scale liquidations. A drop in ETH to $3,200 could trigger over $59 million in long liquidations.
ETH Leads Liquidations – BTC Lags Behind
Over the past 24 hours, ETH dominated market liquidations with a total of $196 million. Of this, $149 million came from Binance alone. In comparison, BTC saw just $45 million in daily liquidations — highlighting much higher volatility and trading activity around ETH.
With most short positions already wiped out, long positions now face greater vulnerability. The recent price rally was largely fueled by a short squeeze that began in late June.
Institutional Demand Is Building
While ETH isn’t considered ultra-scarce, institutional investors, whales, and corporations are increasingly accumulating the token — often to earn passive income through staking and liquid staking.
One major source of ETH demand comes from companies building financial bond structures involving crypto. Like Bitcoin, ETH is being used by multiple firms as a treasury asset. As of July 17, SharpLink Gaming emerged as a leader with an aggressive buying plan, helping drive its stock (SBET) to $38.37.
BitDigital (BTBT) also benefited from ETH’s rally after shifting its treasury strategy from BTC to ETH. The company’s shares hit $3.93 — a yearly high in 2025.
Conclusion
Ethereum is firmly back in the spotlight — not just among traders, but also within institutional finance. The strong rise in open interest, breakouts above key price levels, and growing use of ETH as a strategic asset by companies suggest that the world’s second-largest crypto may be poised for another major expansion.
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