Ethereum open interest rises 18%, is it a signal of a bull trap?

Ethereum futures market activity is $ETH Prices rose and open interest increased by over 18%.

According to Maartung, Ethereum’s open interest has increased by more than 18%, leading the growth among major cryptocurrencies.

As seen on the CoinGlass website, the open interest is $ETH Futures increased by 19.15% to $33.37 billion. The total futures open interest of various cryptocurrencies increased by 9.43% to $113.78 billion in the past 24 hours, indicating increased risk-taking in the market.

OI growth in most major cryptocurrencies is accompanied by positive perpetual funding rates and cumulative volume deltas. This setup indicates a growing demand for bullish leveraged plays.

However, on Deribit, Ethereum-related puts continue to trade more expensive than calls across all time frames, which may indicate traders’ continued desire to hedge downside risk regardless of market rebound.

Bull trap signal?

Ethereum has been rising for 7 consecutive days since March 9th, and today will be the 8th day if it ends in the green.

At the time of writing, $ETH Altcoins rose 7% to $2,299 in the past 24 hours amid a broad market rally that outperformed Bitcoin. Some have recorded double-digit profits.

There was a temporary squeeze on the market recovery. According to CoinGlass data, total liquidations by 96,385 traders in the past 24 hours totaled $398 million, with short-term liquidations accounting for the majority at $320 million. Ethereum shorts were hit the hardest with $141 million.

If the purchaser does not allow $ETH If the price falls below $2,036, there is an increased chance of a rally towards $2,600. Ethereum bulls appear to be targeting $2,800 as the next stop. $ETH Futures data shows the market is fragmented and the chances of the 33% rally being sustained are limited.

If the price declines from current levels, Ethereum could continue trading sideways between $1,750 and $2,200 for some time.