Ethereum's open interest in futures contracts has reached a record high of 10.23 million ETH as of March 21, marking a 15% increase over two weeks. Despite this surge in open interest, ETH has seen a 6% price drop from March 19 to March 21 and a 28% decline since February 21, underperforming compared to the broader crypto market. The increased open interest does not necessarily indicate bullish sentiment, as demand for leveraged longs has decreased. The annualized premium for ETH monthly futures has fallen below 4%, suggesting waning interest in leveraging positions. Furthermore, reduced demand for US-based Ether exchange-traded funds has contributed to price pressure, with net outflows of $307 million noted. Analysts attribute some of Ether's performance decline to a mismatch between network fees and interest in decentralized applications, resulting in a drop in Ethereum's revenue. Overall, while open interest in ETH futures is at an all-time high, investor sentiment remains cautious.

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