Key Points:
- ETH open interest hits $17B, highest in 3 months.
- 81.8% of ETH addresses are in profit.
- Exchange reserves drop, signaling reduced sell pressure.
ETH’s Derivatives Surge
Ethereum’s open interest surged to $17.05 billion on May 13, marking a 3-month high and reflecting rising speculative demand. The sharp jump aligns with ETH’s rally to $2,600+, suggesting that traders are increasingly positioning for further upside. As price and open interest move in tandem, this uptrend indicates renewed market confidence in Ethereum (ETH) post-Pectra.
Ethereum’s funding rates remain positive, signaling bullish trader sentiment as ETH nears $2.6K. However, rising leverage could increase volatility ahead.
As of now, approximately 81.82% of Ethereum (ETH) addresses are in profit, with their entry price below the current trading range. Around 13.8% are out of the money, and 4.38% are at breakeven. The largest cluster of holders accumulated ETH between $2,064 and $2,475, signaling this as a key support zone. The current price sits just below the next major resistance range ($2,679–$2,913), suggesting cautious optimism while momentum builds.
Supply & Demand Impact on ETH
Ethereum’s exchange reserves have declined sharply in May, reaching a monthly low of 19.1M ETH. This trend suggests reduced sell-side pressure, often seen as a sign that holders are moving ETH to self-custody or long-term storage. While not a direct predictor of price, this behavior typically aligns with growing market confidence.
Since Ethereum’s Pectra upgrade on May 7, network activity has picked up significantly. Monthly data shows fees surged over 200% to $2.3 million, while protocol revenue climbed over 300% to $1.3 million. This increase suggests higher on-chain usage and user engagement following the upgrade, although it remains to be seen whether this momentum will sustain.
Ethereum briefly turned deflationary after the May 7 Pectra upgrade due to higher fees and usage. However, ETH burns have declined over the past six months. Long-term deflation depends on sustained demand from rollups, DeFi, and overall network activity.
What’s Next for ETH
Ethereum’s rally is supported by strong derivatives activity, rising fees, and reduced exchange reserves. Sustained momentum will depend on continued network demand and increased buying demand.
All content provided here is for informational purposes only and does not constitute financial or trading advice. Trading involves risk and may result in financial loss. We strongly recommend consulting a licensed advisor before making any investment decisions.
