Ethereum's Open Interest has decreased by $7 billion, settling at $25 billion over the past two weeks, as reported by AMBCrypto. This decline coincides with a surge in leverage to levels not seen since June, highlighting increased speculative risk in the market. The Stock-to-Flow ratio has risen above 40, while the MVRV Z-score has dropped to 0.798, suggesting reduced profitability and unstable demand.
Despite these indicators, funding rates have remained positive, reflecting a bullish sentiment. However, the increased leverage introduces potential risks, as traders may face heightened volatility in the Ethereum market.
Ethereum Open Interest Declines by $7 Billion Amid Rising Leverage
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