The open interest in Ethereum has seen significant ups and downs recently, primarily due to market dominance by sellers. Ethereum faced a severe drop, plummeting from $4,000 to under $2,000 within just four months. In contrast, Bitcoin’s price has largely stagnated near its peak, underscoring Ethereum’s lagging performance during this timeframe.
Ethereum Open Interest Drops Back to November 2024 Levels
Currently, Ethereum’s open interest has dipped below $20 billion, indicating a significant lack of investor enthusiasm within the second-largest cryptocurrency market. This decline has been consistent since December 2024, following a more than 50% drop in Ethereum’s price.
Interestingly, the open interest has reverted to levels comparable to November 2024, a time when Ethereum’s price experienced a rise, ultimately reaching a three-year high of $4,000. This could imply a potential upcoming recovery for Ethereum. However, the current market dynamics are more bearish than bullish, suggesting that sellers continue to dominate the scene.
Open interest had previously surged past $32 billion at the end of January 2025, as reported by Coinglass. Since that peak, it has steadily declined, mirroring the drop in Ethereum’s price. However, this situation might pave the way for a rebound in the cryptocurrency.
Typically, periods of low open interest can signal the beginning of price recovery, as past evidence suggests. Thus, the current low interest in Ethereum could potentially mark the point where the altcoin starts to find its footing and move upward once again.
Are ETH Whales Staying or Exiting?
Transactions involving Ethereum whales have noticeably decreased, particularly over the last week. Data from IntoTheBlock indicates that May began on a bearish note, with fewer than 3,000 transactions exceeding $100,000 occurring around May 3-4, suggesting a general apathy towards Ethereum.
Profit margins for Ethereum holders have also taken a hit. While a vast 91% of Bitcoin investors are in profit, only 42% of Ethereum holders can say the same, with 52% facing losses. Additionally, 7% are at break-even. This percentage might further decrease if Ethereum’s value drops closer to $1,500.
