Ethereum Defies Gravity: Binance Open Interest Skyrockets to Record High — Is an ETH Mega-Rally Imminent?
Ethereum isn't just holding its ground—it's priming for a potential explosion. With Binance open interest smashing through previous records, traders are betting big on ETH's next move.
Key support levels? Holding. Market sentiment? Greedy with a side of FOMO. The stage is set for a volatility feast—whether you're feasting or becoming the main course depends on your risk appetite.
Meanwhile, Wall Street still can't decide if crypto is 'digital gold' or 'a speculative asset'—classic hedge fund whiplash. One thing's certain: while traditional finance debates, blockchain doesn't wait for permission.
ETH Binance open interest hits record levels
According to an Aug. 4 analysis by CryptoQuant contributor BorisVest, Ethereum’s open interest on Binance has reached an all-time high of $8.7 billion, more than three times the peak seen during the 2021 bull market. Back then, ETH traded at a similar price, yet open interest topped out around $2.5 billion.
Leverage and speculative positioning have significantly increased in the current surge. Funding rates, however, are still neutral, indicating that the market is not yet overly bullish or bearish. This leaves room for positions to grow without triggering immediate corrections.
This quiet buildup is also supported by volume. ETH spot trading volume increased by almost 45% to over $28 billion in the last day. As per Coinglass data, total open interest across exchanges increased to $48.26 billion, alongside rising derivatives activity. These metrics point to growing engagement, not driven by panic or hype, but by calculated positioning.
Ethereum technical analysis
On the technical side, ethereum appears to be in a strong uptrend, with price action staying above key moving averages like the 10-, 20-, and 50-day estimated moving averages. Since the relative strength index is near neutral territory, there is still room for a big push before the market becomes overbought.
However, short-term indicators like momentum and MACD are showing signs of mild bearishness, indicating a potential slowdown should buying pressure decrease. If demand picks up, ETH’s value could rise further, as Bollinger Bands show that it is not yet overpriced.
In a bullish scenario, ETH stays above $3,600 and breaks above $3,875, possibly aiming for $4,000 as leverage increases without taking on excessive risk. A bearish MOVE that pushes ETH toward $3,100 to $3,200 could occur if momentum wanes and the price falls below $3,380. For now, the trend remains constructive with support intact.
