Ethereum’s open interest has dropped below $20 billion, reflecting decreased market interest following a price fall from $4,000 to below $2,000. This trend mirrors November 2024 levels when prices peaked, raising questions about recovery potential. Meanwhile, whale transactions have plummeted, paralleling diminished profitability among ETH holders, where over half are currently at a loss.
Ethereum’s open interest has taken quite a tumble recently, fluctuating wildly as market dynamics shifted to favour sellers. Price-wise, ETH has experienced a staggering drop, plummeting from $4,000 to below $2,000 within just four months. Interestingly, Bitcoin’s price has remained close to its all-time high, underscoring Ethereum’s significant underperformance in contrast to the leading cryptocurrency.
Presently, Ethereum’s open interest has dipped below $20 billion, a clear indicator of waning interest in the second-largest cryptocurrency. This decline has been steady since December 2024, which followed a significant price crash of over 50%. Notably, the current levels echo those from November 2024, a time when Ethereum was witnessing a price surge, eventually peaking at $4,000—suggesting there could be potential for recovery. However, the prevailing market conditions lean bearish, suggesting bears hold a stronger influence right now.
Open interest rose above $32 billion at the end of January 2025, before descending in tandem with ETH’s value. But some analysts believe this might signal a turning point; historically, market downturns with low interest often lead to a reversal phase. As Ethereum’s interest wanes, it’s possible the altcoin could be nearing a bottom before any upward movement.
On another note, activity among Ethereum whales has also dwindled. Data from IntoTheBlock reveals a marked decline in high-value transactions, with fewer than 3,000 trades involving $100,000 or more of Ethereum during early May. This trend mirrors the low interest seen in open interest figures.
Profitability within Ethereum holdings has also taken a hit. While an impressive 91% of Bitcoin holders are enjoying profits, the scenario is quite different for Ethereum investors. Presently, about 52% of these holders are at a loss, with only 42% in profit and a mere 7% at breakeven. Should prices continue to slide, particularly were they to approach the $1,500 mark, this percentage of profitable holders could diminish even further.
