CryptoQuant: Ethereum futures open interest hits record high of over $20 billion

PANews reported on November 22 that, according to The Block, the Ethereum derivatives market may be sending bullish signals, as the open interest in futures contracts surged over 12% on Friday to a record $20.8 billion. According to a report by CryptoQuant, the Ethereum OI-weighted futures funding rate has spiked to new record highs over the past week, indicating that long traders are in the dominant position. The CryptoQuant report added that, based on Coinglass data, the current funding rate is 0.0374%, suggesting a bullish market sentiment in the short term. Furthermore, Ethereum's estimated leverage ratio (a metric measuring the open interest against the exchange reserves) has climbed to a new record high of 0.40. This indicates that traders are increasing their risk exposure by using higher leverage to amplify potential returns. However, the CryptoQuant report warned that the rise in leverage and the dominance of long positions may increase the risk of a long squeeze; sudden price volatility could trigger liquidations and lead to a market adjustment.