ETH Market Activity Booms: Open Interest Soars, Short Squeeze Triggers High Leverage

Recent market activity for Ethereum (ETH) has shown significant signs of acceleration, according to data from Michael Nadeau, founder of DeFi Report. His insights on X (formerly Twitter) revealed a 40% increase in open interest for ETH within the past few days, indicating a surge in leveraged long positions. This surge is further evidenced by a dramatic jump in daily trading volume, which now averages $15-18 billion, compared to previously between $4-6 billion. This influx of real capital has also led to a rise in the funding rate from 0.005% to 0.03%, with short liquidations exceeding $85 million in recent days. These factors all suggest that ETH is experiencing a spike driven by real capital, increased leverage and the impact of a short squeeze.