🚀 $ETH gets a boost to over $3.4k as open interest peaks
Ethereum (ETH) is finally having its breakout day, as BTC dominance stalled. ETH recovered the $3,300 level, setting expectations for an even more significant run.
Ethereum (ETH) broke out to $3,359.11, reaching a three-month peak and recovering some of its losses from the slump in March and April. ETH is closely watched for its ability to break out even higher after months of weakness against BTC.
ETH also gained to 0.029 BTC, as the leading coin is consolidating at $118,000. The recent ETH recovery also sparked hopes for a full altcoin market, or at least a spillover to the Ethereum ecosystem.
The recent ETH breakout after months of relative weakness sets expectations that the token may repeat historical bull rallies, stopping at a much higher range.
🔸 Ethereum open interest rises to three-year peak
The recent ETH rally is driven by derivative trading. Open interest on crypto exchanges expanded to a three-year peak above $22B.
For ETH, the breakout in open interest suggests the asset is finally seen as more lively, after months of low trading activity and open interest under $10B.
The current open interest holds around 65% in long positions, as traders are cautious about drawdowns. ETH has now broken way above the liquidation levels on DeFi protocols. The first significant liquidation thresholds start as low as $1,600, making most lending protocols highly secure.
The recent spike in open interest may also increase liquidations for ETH traders. Long positions may be at a higher risk, as there are almost no short positions left to attack. Based on the recent accrued liquidity, ETH may take a dip to $3,200 to liquidate over $59M in long positions.
During the rally above $3,000, ETH mostly erased short positions. For the past 24 hours, ETH became the liquidation leader, with $196.74M liquidated. Binance was the leader, with over $149M of the liquidations concentrated on its markets. In comparison, BTC only saw around $45M in daily liquidations.
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