ETH Derivatives Open Interest Collapse
Contracting derivatives activity and concentrated open interest on Binance indicate reduced trader participation and weakening market structure for Ethereum
Too little corroboration in the last 3 days to call a trend (2 articles). Watching for it to gain traction.
"Ethereum open interest has fallen from $33.1 billion in August 2025 to $10.4 billion. The drop reflects liquidations, lower prices and voluntary position closures as traders cut exposure."
"Ether futures open interest fell to $10.3 billion on Thursday, down from about $15 billion a month ago—roughly a 31% decline. The estimated leverage ratio (ELR) fell to 0.83 from an all-time high of 1.10 on June 2. Lower leverage can reduce short-term volatility and speculative pressure, but it usually comes with a trade-off: it often reflects weaker conviction."