Ethereum's open interest in futures reached an all-time high of 10.23 million ETH on March 21, 2025, increasing 15% over two weeks. However, the price of ETH has dropped 6% in the same period and is down 28% since February 21. Despite the increasing open interest, macroeconomic factors and declining Ethereum network fees are creating bearish sentiment among investors. The annualized premium for ETH monthly futures also fell below 4%, suggesting reduced motivation for long positions. Additionally, outflows from US-based Ether ETFs amounted to $307 million within two weeks, further impacting demand. Analysts point to the balancing issues between transaction fees and decentralized application (DApp) usage, contributing to Ethereum's recent price struggles. The Ethereum network's revenue from transactions declined significantly to $605,000 from $2.5 million just two weeks earlier, reflecting a decrease in the interest for DApps. Overall, the surge in open interest is not linked to bullish positioning, as demand for leveraged long positions remains weak, indicating a cautious market outlook.

Source 🔗