Ethereum's open interest might lead to enormous volatility surge
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Open interest is an essential metric for understanding the futures market. It represents the total number of outstanding futures contracts that have not yet been settled. When open interest is high, it indicates that many traders have open positions on the market. For Ethereum, open interest has been ramping up continuously. But what does this mean? And more importantly, why should we be concerned?depict ever-increasing open interest.
This"scary" surge in open interest, paired with volatile price actions, could lead to what traders term a"long squeeze" or a"short squeeze." If the majority of these open contracts are betting on Ethereum's price to go up and the price starts to drop, it could trigger a cascade of sell-offs.Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future.
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