PANews reported on November 22 that according to The Block, Ethereum's derivatives market may be sending bullish signals as futures open interest surged by more than 12% on Friday to a record high of $20.8 billion. According to a report from CryptoQuant, Ethereum OI-weighted futures funding rates have surged several times over the past week, setting new historical highs, indicating that bullish traders are dominant. "The CryptoQuant report added that according to Coinglass data, the current funding rate is 0.0374%, indicating that market sentiment is bullish on price increases in the short term.
. In addition, Ethereum’s estimated leverage ratio (a measure of open interest divided by exchange reserves) has climbed to a new record high of 0.40. This suggests that traders are increasing their risk exposure as they use higher leverage to amplify potential returns. However, the CryptoQuant report warns that increased leverage and the dominance of long positions could increase the risk of a long squeeze; sudden price movements could trigger liquidations, leading to market corrections.
