Ethereum (ETH) is making headlines in the crypto market, not just for its price action but for a surge in derivatives activity that signals growing institutional interest and potential for further volatility. As ETH hovers near the $2,850 resistance, its futures open interest has reached an all-time high, reflecting a dynamic shift in market sentiment and positioning.
ETH Futures Open Interest Surges to New Heights
In recent days, Ethereum’s futures open interest (OI) soared to a record 15.21 million ETH, with a significant portion of this growth driven by the Volatility Shares 2x leveraged ETH ETF. This surge in OI, which represents the total number of outstanding futures contracts, is a strong indicator of heightened trading activity and investor engagement 1. Notably, the Chicago Mercantile Exchange (CME) has been at the forefront of this trend, with institutional players seeking leveraged exposure to ETH.
The data shows that, between April and early June, the ETHU ETF alone added over 305,000 ETH in exposure, accounting for nearly all of the OI growth on CME. Without this ETF, CME’s open interest would have actually declined, underscoring the outsized impact of leveraged products on the current market structure.
Consistent Inflows and Accumulation Support Bullish Case
Beyond derivatives, spot market activity has also been robust. US spot Ethereum ETFs have recorded net inflows for 17 consecutive days, with $124.93 million added on Tuesday alone. Meanwhile, accumulation addresses—wallets that have never sold their ETH—have seen inflows exceeding 400,000 ETH on five of the last seven days. This pattern suggests that both institutional and retail investors are positioning for potential upside, reinforcing the bullish undertone.
Technical Picture: Resistance and Support Levels in Focus
ETH briefly broke above the $2,850 resistance for the first time since February, buoyed by a 12% rally over three days and a decisive move above its 200-day Simple Moving Average (SMA). This technical milestone often signals the start of a stronger uptrend. If ETH can sustain momentum above $2,850, the next significant resistance is near $3,078 (the 61.8% Fibonacci retracement), with a clear path up to $3,400 if buying pressure persists.
On the downside, the 200-day SMA now acts as a key support. A failure to hold above $2,850 could see ETH retesting the $2,500 level. Technical indicators like the Relative Strength Index (RSI) are approaching overbought territory, while the MACD is attempting a bullish crossover, both pointing to increased volatility ahead.
ETH/USDT daily chart
Volatility and Liquidations Highlight Market Risks
The surge in open interest and leveraged trading has brought increased volatility. In the past 24 hours, Ethereum futures saw $111.56 million in liquidations, split between $64.26 million in long positions and $47.29 million in shorts. This underscores the risks associated with aggressive positioning, especially as ETH options markets also show high activity near current price levels 1.
Outlook: Path to $3,400 Open, but Volatility Expected
With strong inflows, rising open interest, and technical momentum, Ethereum appears well-positioned for further gains if it can decisively clear the $2,850 barrier. However, the concentration of leveraged positions and the potential for rapid liquidations mean that traders should be prepared for sharp price swings as the market digests these developments.
