Ethereum (ETH) Has Something ‘Scary’ Happening in Background
The post Ethereum (ETH) Has Something ‘Scary’ Happening in Background appeared on BitcoinEthereumNews.com. Arman Shirinyan Ethereum’s open interest might lead to enormous volatility surge Cover image via www.freepik.com Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available. Ethereum’s recent developments in the futures market are causing a stir. The charts are whispering some alarming messages, and those in the know are paying close attention. 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? Source: TradingView The recent charts for Ethereum depict ever-increasing open interest. The continual upward trend in open interest indicates a growing number of investors betting on the future price movements of ETH, either up or down. While high open interest can be seen as a sign of heightened activity and interest in Ethereum, it also suggests that there is a lot of speculative trading happening. Speculative trading, as history has shown us, can lead to intense volatility. When examining the attached open interest chart, one notices a stark divergence. While Ethereum’s price has seen fluctuations and is showing signs of consolidation, the open interest continues to surge. This divergence can be a precursor to significant…
The post Ethereum (ETH) Has Something ‘Scary’ Happening in Background appeared on BitcoinEthereumNews.com.
Arman Shirinyan Ethereum’s open interest might lead to enormous volatility surge Cover image via www.freepik.com Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available. Ethereum’s recent developments in the futures market are causing a stir. The charts are whispering some alarming messages, and those in the know are paying close attention. 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? Source: TradingView The recent charts for Ethereum depict ever-increasing open interest. The continual upward trend in open interest indicates a growing number of investors betting on the future price movements of ETH, either up or down. While high open interest can be seen as a sign of heightened activity and interest in Ethereum, it also suggests that there is a lot of speculative trading happening. Speculative trading, as history has shown us, can lead to intense volatility. When examining the attached open interest chart, one notices a stark divergence. While Ethereum’s price has seen fluctuations and is showing signs of consolidation, the open interest continues to surge. This divergence can be a precursor to significant…
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