Ethereum Open Interest Tops $10B as Institutional Buying Accelerates

2 mins mins

Key Points:

Binance Ethereum open interest exceeds $10 billion, with shorts up 500% since November 2024.
Institutions, including BlackRock and Fidelity, bought $1 billion in ETH through ETFs.
$151 million in ETH liquidations occurred in the past 24 hours, with $93 million from shorts.

Ethereum’s open interest on Binance has exceeded $10 billion, marking one of the highest levels recorded this year.

Analysts from CryptoQuant report that market-wide short positions have surged 500% since November 2024, rising 40% in just the past week.

AD 4nXeYmAXnNrXu7Lri0VdQyeIRwslPKDzr12Va6tDBVAlT5AOdI6Pyka2FrGH7sAmxObXh7tfjJdvy5x8TruQc kbLjQMMyCBPnP8lESLSnSyI38cPCfcg7fVL 9W2UDOYXFGiFi6i?key=8rHOYA9Tl6X8j3RILz16qQ — Ethereum Open Interest Binance | Source : CryptoQuant

This shift suggests that a potential short squeeze could unfold if prices break higher.

Institutional demand has intensified as ETFs collectively purchased $1 billion in ETH, according to Arkham Intelligence data.

BlackRock acquired $640 million, Fidelity added $270 million, and Grayscale bought $80 million worth of Ethereum. According to analysts, this influx of institutional capital could amplify volatility in the short term.

The derivatives market has reacted sharply, with liquidations totaling $151 million in the last 24 hours, Coinglass data shows.

AD 4nXfid3RxdIJ5OWPdwe0LyggV52vFZOxHz4wpXnaaYc9WfwXaJRWlmXPpqJLfrp1eMBxxVCj2Xw6mWCmxuI7nvKUIiGFNo0NreeEvQ zyYYaY1Mio0qtfa VKO3VXlnut — Source : Coinglass

Of this, $93 million came from short positions, while $58 million was from longs. This imbalance may force aggressive covering if ETH prices keep climbing.

Institutions Accelerate ETH Accumulation

On-chain data reveals continued large-scale buying from corporate and publicly traded entities. SharpLink acquired an additional 5,226 ETH worth $23.1 million, increasing its total holdings to 604,026 ETH valued at $2.69 billion.

Ethereum Open Interest Tops $10B as Institutional Buying Accelerates 3 — Source : X

This accumulation trend is mirrored by Bitmine Immersion’s plan to raise up to $20 billion to expand its Ethereum reserves.

Ethereum’s spot price is trading around $4,234, nearing the $4,700 cost basis level for active investors, according to Glassnode.

AD 4nXfbZLPrt1hpRnFkFU0l1a 7zH4bMuGfEFxELOKP0yBpkfFYN A62 P0sFGcXbNnZpwHw4PTQiBPXIRQ4zn vDxBkZMR — Ethereum Realized Price to Liveliness Ratio | Source : glassnode

The price action also mirrors Ethereum’s 2016–2017 fractal pattern, which preceded a parabolic rally to all-time highs. Historical comparisons suggest further upside potential if similar conditions play out.

AD 4nXcStXg9oUi98xp8edXrVTdUZcd1HXgvbX0xAsK7VuKfbQJq5Uvh1yf oGXYMpCKH7NWfaoZpPYm7hvYLCHWv2pSd6 TvToZ tixMX9o6rdVV9 54AdVcg7qvggUD8UC3t17B 7X?key=8rHOYA9Tl6X8j3RILz16qQ — Source : X

Market structure indicators also highlight growing strength in altcoins. Glassnode data shows a large and sustained drop in Bitcoin dominance, often associated with capital rotation into Ethereum and other major altcoins.

As per analysts, this macro backdrop, combined with rising institutional inflows, sets a favorable stage for ETH’s next move.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.