Ethereum Futures Open Interest Hits 20-Month High, Leverage Demand Remains Balanced

Between September 17 and September 19, Ethereum’s price surged by 11.7%, reaching a three-week high of $2,572. This price action coincided with a rise in Ethereum futures open interest, which soared to a 20-month high. As a result, traders have grown concerned that the increased leverage might amplify potential price volatility.

Lower interest rates have favored ETH’s bullish momentum, but risks in the U.S. economy persist. The recent rise in ETH prices aligns with an 8.3% overall increase in the cryptocurrency market, driven by U.S. interest rate cuts and strong labor market data. This momentum also pushed the S&P 500 index to a record high on September 19. Lower interest rates reduce the cost of corporate debt issuance, easing concerns about a potential stock market correction.