ETH funding hits lowest level since 2022 as open interest slides

💡 DMK Insight

Ether’s open interest is dropping, and that could trigger a short squeeze soon. When open interest declines, it often indicates that bearish positions are being closed out, which can lead to a rapid price increase as shorts scramble to cover. With ETH currently at $1,976.88, a rally to $2,500 isn’t just wishful thinking; it’s a real possibility if the momentum shifts. Keep an eye on the funding rates, as they can signal trader sentiment. If they remain low or turn positive, it could further fuel buying pressure. But here’s the flip side: if the broader market sentiment shifts negatively, or if Bitcoin starts to falter, it could quickly reverse any bullish momentum. Watch for key resistance at $2,000 and support around $1,900. If ETH breaks above $2,000 convincingly, it could trigger more buying from both retail and institutional traders. The next few days will be crucial, so stay alert for any sudden changes in volume or sentiment.