NEWSLETTER
The analysis analysis firm in the Glassnode chain has revealed how the ethereum's futures market is still overheated despite the long squeeze that has just occurred.
ethereum Open Interest still markedly above the annual average
In a new one <a target="_blank" href="https://x.com/glassnode/status/1886709052815630382″ target=”_blank”>mail In x, Glassnode has discussed how the ethereum futures market has changed during the past day. eth, like other digital assets, has witnessed significant volatility within this window. The acute price action generally means chaos for the sector derivatives and, in fact, a large number of liquidations have accumulated in the various exchanges.
Since the price action has been mainly towards the inconvenience of ethereum, the long investors would be the most affected. Below is the shared table by the analysis firm that shows the trend in the long liquidations related to eth during the past year.
<img src="https://technicalterrence.com/wp-content/uploads/2025/02/Ethereum39s-leverage-elevated-despite-the-long-compression-says-Glassnode.jpeg" alt="ethereum Long Liquidations” />
From the graph, it is visible that the ethereum futures market has witnessed a large amount of long liquidations. “Yesterday, $ 76.4 million in eth Long settlements reached the market, with $ 55.8 million annihilated in one hour, the second largest increase in a year, just behind the $ 56 million in December,” says Glassnode.
These liquidations have meant that there has been a remarkable eth leverage discharge on derivative platforms. Here is another picture, this time for open interest, which shows market disappointment:
<img src="https://technicalterrence.com/wp-content/uploads/2025/02/1738768148_708_Ethereum39s-leverage-elevated-despite-the-long-compression-says-Glassnode.jpeg" alt="ethereum open interest” />
The “open interest” is an indicator that monitor the total number of futures positions related to ethereum that are open in all exchanges of centralized derivatives. At the beginning of the month, this metric was at around $ 20.5 billion, but after the mass liquidation event, its value has dropped to $ 15.9 billion.
This suggests that $ 4.6 billion have been eliminated in market positions. While this represents a great decrease, it has not really been enough to cause sufficient cooling in open interest.
<img src="https://technicalterrence.com/wp-content/uploads/2025/02/Ethereum39s-leverage-elevated-despite-the-long-compression-says-Glassnode.png" alt="ethereum Futures long -term trend” />
As shown in the previous table, the 365 -day mobile (MA) average of ethereum is currently at $ 13 billion. Therefore, the daily value of the metric is around 22% higher than last year's average.
This could be a potential indication that leverage in the sector is still at high levels, despite the large number of liquidations that long investors have suffered.
Historically, an overheated future market has generally unbalanced with volatility for the price of currency, so it is possible that a more acute action for eth in the near future is followed.
eth price
ethereum saw a clash towards the $ 2,100 mark yesterday, but it seems that the cryptocurrency has seen a rebound since its price now quotes around $ 2,800.
x/8Z6Z9F92/” alt=”ethereum Price Graph” /> (Tagstotranslate) eth
