Ethereum has seen a steady decline from its ATH (All Time High). However, the numbers show that the open interest of Ethereum has never been more than reaching a peak today. We will try to understand why the Open Interest for Ethereum has never been more despite the crisis period.
What is Open Interest in French?
If we take the passage from the book Wall Street Words by David L. Scott, “Large open interest indicates more activity and liquidity for the contract“. In other words, open interest can be defined as the sum of the contracts in relation to a particular futures instrument current at any particular time.
Concretely, open interest acts as a barometer your market activity. For example, high open interest indicates a large number of traders with open positions and that many people will take turns to the instrument in question.
Consequences of Open Peak-Interest Mergers
Data analysis site Kaiko took an interest in Ethereum investment and interest rates.
ETH Open Interest Reached Last August historical highlights before The Merge, scheduled for mid-September. However, we have seen a decrease in open positions since September, from 5.1 million ETH in open contracts to about 4.7 million. Despite this reduction, 4.7 million still represent one of the largest large accumulations open positions we have seen in Ethereum in the perpetual future.
Regarding the funding rates of Ethereum, they are in brief from the negative the last days. This represents a significant gain from the downturn at the end of August. It is conceivable that Ethereum sentiment is rising as The Merge approaches.
However, when compared to Bitcoin’s funding rate, the outlook for ETH in perpetual futures markets is always more bearish due to the possibility of The Merge failing.
The Crypto Crisis continues
While some predicted a rise in the price of cryptocurrencies, Bitcoin continues to fall. In fact, the crypto flagship is struggling to stay above the €20,000 mark. At the time this article was written, it even fell below €19,000 Achieving €18,957.
On the other hand, Ethereum (ETH) fell in the same time under 1600 € Reaching €1,531.03 today. The 2 cryptos the most common struggle to reach their threshold of resistance. Today, they work in a more than uncertain market, struggling to maintain a proper level.
One of the reasons for this decline is the uncertainty of the crypto marketst the energy crisis in Europe. The Nord Stream gas pipeline that supplies much of Europe’s gas has been shut down indefinitely. Basically, Russia wants sanctions against it lifted because of the invasion of Ukraine.
On the other hand, the ECB (European Central Bank) could. trigger a retreat take a bearish approach. This decision can be explained by the strong inflation of the euro rate from this summer which reached 9.8% in July
The IS the evil of the crypt they are not just external phenomena but internal problems. Michael Saylorone of the largest investors in the crypto market, facing a lawsuit in the District of Columbia for tax fraud. The “Bitcoin King” would have 10 years of unpaid taxes. Also, the Boss announced that he has left the position of CEO of Microstrategy, the company he founded.
NEW: Today, we’re suing Michael Saylor — a billionaire tech executive who’s lived in the District for more than a decade but never paid any DC income taxes — for tax fraud.
— AG Karl A. Racine (@AGKarlRacine) August 31, 2022
Finally, bad news does not come alone. The Crypto Leaks article claimed it was malicious transactions exposed in the crypto world. Ava Labs, the company behind the Avalanche blockchain, has been accused of paying the law firm Roche Freedman to sue competitors. This news has further shaken the already troubled bear market.
Crypto Leaks, Case #3 live now📢
Ava Labs (Avalanche) attacks Solana & SEC in evil conspiracy with merchant law firm, Roche Freedman
Revealed by video 🕵️♂️📽️
—CryptoLeaks (@CryptoLeaksInfo) August 26, 2022