ETH sets up for breakout tally as Ethereum open interest reaches all-time high

Ethereum (ETH) trading could be setting up for a price rally as traders ramp up open interest to record levels. Data shows ETH open interest is at record highs following months of subdued trading and sideways price action. 

After months of sideways trading, ETH is moving close to $2,800, signaling a bigger potential breakout. The recent expansion of open interest is also considered a rotation from BTC, aiming to tap a higher-risk asset with bigger potential returns. ETH is still seen as the signal for a new altcoin market, aiming to challenge BTC’s dominance. 

Ethereum is setting up for a run

Based on CryptoQuant data, ETH futures point to the highest level of speculation, while whales are still holding onto ETH in their self-custodied wallets. Open interest on derivative exchanges hovers around $22B, or 7.17M ETH.

In the meantime, ETH buyers are in holding mode, with no significant profit-taking. 

Ethereum’s trading replicates the BTC scenario, where spot trading slowed down and holders are no longer taking profits, despite near-record prices. At the same time, even retail investors are testing derivative markets. Both crowd traders and smart money are cautiously bullish on ETH after it broke out of its months-long range. 

$ETH Sentiment

CROWD = Bullish 🟩
MP = Bullish 🟩

Check out sentiment and other crypto stats at https://t.co/HQDyBNuzek pic.twitter.com/yM2zdCCMi6

— Market Prophit (@MarketProphit) June 11, 2025

ETH is expected to repeat breakouts from previous cycles, as it is considered undervalued despite being key to several decentralized activities. 

The current open interest is predominantly long, with around 31% in short positions. Short sellers remain cautious, deploying limited liquidity up to $2,900. At the same time, high-risk whales are showing conviction, as in the case of a new whale with an ETH long position, valued at $11M. 

Ethereum remains in holder mode

On-chain activity for Ethereum remains relatively high, with 431K daily active addresses. ETH and USDT transactions are the most common activity, burning the most gas. The Ethereum network still carries highly active DeFi apps and DEXs, offering a mix of passive income and on-chain trading. 

On-chain lending also expanded, with over $1B in liquidatable positions on DeFi protocols. The liquidation levels for ETH are slowly rising to above $1,500 on MakerDao, Liquidy, Compound, and Aave.

In the past months, whales re-accumulated ETH and achieved a lower average entry price. Traders stopped sending ETH to exchanges, diminishing the available reserves to around 18.99M ETH. 

Additionally, more whales are waiting to stake their ETH and receive block rewards. A total of 9,863 potential validators are waiting in the deposit queue, with only 352 validators leaving.

The most bullish narrative for ETH is its slow recovery following the 2023 bear market. ETH was expected to rally in the $6,000 to $10,000 range, based on DeFi activity, larger stablecoin supply and wider adoption.

Instead, ETH sank to a lower range and dipped under 0.02 BTC. Currently, ETH has recovered to around 0.026 BTC, awaiting a return to a higher range after months of being considered a dead coin and an obsolete chain.

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