Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • TRADING
  • SUBMIT
Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • TRADING
  • SUBMIT
Crypto Flexs
Home»ETHEREUM NEWS»Is Ethereum a time bomb? Breaking records with derivatives indicators
ETHEREUM NEWS

Is Ethereum a time bomb? Breaking records with derivatives indicators

By Crypto FlexsNovember 22, 20243 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
Is Ethereum a time bomb? Breaking records with derivatives indicators
Share
Facebook Twitter LinkedIn Pinterest Email

Data shows that indices related to Ethereum derivatives have surged recently, a sign that the price is at risk of experiencing a storm of instability.

Recently, both Ethereum open interest and leverage ratio have soared.

In a CryptoQuant Quicktake post, one analyst discussed the trends in Ethereum derivatives indicators. The metrics in question are open interest and expected leverage ratio.

First, open interest tracks the total amount of ETH-related contracts currently open across all derivatives platforms. This indicator naturally takes into account both long and short positions.

When the value of this indicator rises, it means that investors are taking new positions in the market. This trend suggests a growing interest in derivatives trading for the coin.

On the other hand, a bearish indicator means that market positions are falling. This could be due to investors deliberately shutting it out or the exchange forcing it to liquidate.

Now here is a chart showing the trend of Ethereum open interest over the past few years:

The value of the metric appears to have been shooting up in recent days | Source: CryptoQuant

The graph above shows that Ethereum open interest has been growing rapidly recently. It surpassed the previous all-time high (ATH) and set a new record of over $13 billion.

Considering the period of the last four months, the indicator has increased by more than 40%, which suggests an explosion of speculative interest surrounding cryptocurrencies.

However, as the trend in the second indicator of relevance, the estimated leverage ratio, suggests, this development may not be the healthiest one. This indicator measures the ratio between open interests and derivatives trading reserves.

Derivatives exchange reserves are, of course, the total amount of cryptocurrency held in wallets associated with all centralized derivatives exchanges.

The expected leverage ratio tells you what leverage or lending amount the average derivatives user in the Ethereum market is currently choosing.

Below is a chart for this indicator.

Ethereum expected leverage ratio

Looks like the value of the metric has been heading up over the last few weeks | Source: CryptoQuant

Looking at the graph, it is clear that Ethereum’s estimated leverage ratio has recently surged. This means that the increase in open interests is faster than the increase in derivatives trading reserves.

Investors are currently sitting at all-time high (ATH) leverage, which could be a bad sign for ETH as it means future volatility could crush overly leveraged positions and trigger a mass liquidation event called a squeeze.

The quant noted that the Ethereum funding ratio, which is the ratio between long and short positions, is currently positive, meaning it is more likely to contain the bullish side of the market if a squeeze occurs soon.

ETH price

As of this writing, Ethereum is trading at around $3,000, down nearly 7% over the past week.

Ethereum price chart

The price of the coin seems to have been consolidating sideways recently | Source: ETHUSDT on TradingView

Dall-E, featured image from CryptoQuant.com, chart from TradingView.com

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

‘OG’ Whale Attracts Over $400 Million in Bearish BTC Bet

October 10, 2025

BitDigital becomes the first public Etherrium for distributing unsecured leverage -details -Details

October 6, 2025

Ethereum Future is an execution of stablecoins and tokenized assets -then you need to know:

October 2, 2025
Add A Comment

Comments are closed.

Recent Posts

CME Group Launches CFTC Regulated Solana and XRP Options

October 13, 2025

Eightco Holdings Inc. ($ORBS) Makes Strategic Investment Into Mythical Games To Accelerate Human Verification And Digital Identity In Gaming

October 13, 2025

Jiuzi Holdings, Inc. (JZXN) Secures 100 Bitcoin Via Private Placement, Signaling New Phase In Crypto Treasury Deployment

October 13, 2025

Collaboration Across Bybit, DigiFT And UBS UMINT Expands Collateral Solution For Institutions

October 13, 2025

BitMine Immersion (BMNR) Announces ETH Holdings Exceeding 3.03 Million Tokens And Total Crypto And Cash Holdings Of $12.9 Billion

October 13, 2025

Phemex Announces Halloween Futures Trading Festival With 200,000 USDT Prize Pool

October 13, 2025

ViaBTC Unveils Enhanced Collateralized Loan Service For Global Miners

October 13, 2025

Tapbit secures strong presence at TOKEN2049 in Singapore

October 13, 2025

Tapbit Delivers A Strong Presence At TOKEN2049 Singapore

October 13, 2025

Touareg Group Expands Global Presence With Establishment Of U.S. Technology Subsidiary

October 13, 2025

Cardano (ADA) Faces Selling Pressure – Is This the Start of a Trend?

October 12, 2025

Crypto Flexs is a Professional Cryptocurrency News Platform. Here we will provide you only interesting content, which you will like very much. We’re dedicated to providing you the best of Cryptocurrency. We hope you enjoy our Cryptocurrency News as much as we enjoy offering them to you.

Contact Us : Partner(@)Cryptoflexs.com

Top Insights

CME Group Launches CFTC Regulated Solana and XRP Options

October 13, 2025

Eightco Holdings Inc. ($ORBS) Makes Strategic Investment Into Mythical Games To Accelerate Human Verification And Digital Identity In Gaming

October 13, 2025

Jiuzi Holdings, Inc. (JZXN) Secures 100 Bitcoin Via Private Placement, Signaling New Phase In Crypto Treasury Deployment

October 13, 2025
Most Popular

1.x file: January call summary

February 13, 2024

Pudgy Penguins Announces ‘Pudgy World’ Web3 Game on zkSync Blockchain

December 10, 2023

VanEck shifts focus to spot Ethereum ETF, phases out futures fund EFUT

September 8, 2024
  • Home
  • About Us
  • Contact Us
  • Disclaimer
  • Privacy Policy
  • Terms and Conditions
© 2025 Crypto Flexs

Type above and press Enter to search. Press Esc to cancel.