Ethereum Futures Reach One-Year High Amid Liquidation Risks

By: Eva Baxter

Ethereum Futures Hit One-Year High Amid Liquidation Risks

Ethereum has soared by 20% over the past five days, sparked by speculation that a much-anticipated Ethereum ETF holds a 75% chance of approval. This surge has led to increased activity in Ethereum futures markets, with open interest reaching a one-year high of 3.6 million ETH, according to Glassnode data.

However, some on-chain data raises concerns about the rally's sustainability. When Ethereum was around $4,000 on March 11, open interest was just 2.9 million ETH. This suggests speculative money has piled in, yet the current lower price level poses liquidation risks.

Additionally, a substantial amount of Ethereum has been flowing onto exchanges, with approximately 100k ETH moving there recently, according to Glassnode. On a positive note, CME's Ethereum futures trading has grown 28% in 24 hours, according to Coinglass data, hinting at further price support if Ethereum follows Bitcoin's path towards institutionalization.