CryptoQuant data reveals a significant drop in Ethereum’s open interest, the total value of outstanding futures and perpetual contracts, back to levels seen before the last major price surge earlier this year. This coincides with a notable decrease from its September peak, reaching approximately $19.4 billion. Analysts suggest that such resets often precede powerful upward movements by clearing excess leverage in the market. Notably, this figure mirrors what was observed in June, right before Ethereum’s multi-month rally pushed prices above $4,800. However, while a drop in open interest can sometimes cause short-term volatility, it also signals a potential consolidation phase, paving the way for a sustained price rally if fresh demand emerges.