- Binance ETH open interest hits $10.75B amid 500% short position surge since Nov 2024.
- Pectra upgrade boosts staking, cuts Layer-2 fees by 90%, and limits ETH liquid supply.
- ETFs, whale buys, and pro-crypto laws drive institutional Ethereum market participation.
Futures activity for Ethereum on Binance has hit a record high, with open interest climbing to approximately $10.75 billion in August. This comes as the number of short positions across the market has skyrocketed 500% since November 2024, creating a powder keg for a potential short squeeze.
Data shows that Ethereum’s open interest on Binance has been growing since late May 2025, tracking alongside a powerful rally in the spot price from near $1,800 to above $4,200, a gain of over 130% in under three months. The recent peak in open interest occurred as Ethereum approached the $4,300 level.
An ongoing story. This record open interest has been building for a while. Here’s CoinEdition’s previous report on the trend.
Although the latest session saw a 2.32% decline in open interest, the levels remain historically high. Analysts note that this kind of setup can lead to violent market swings if a large number of positions are suddenly wiped out.
ETH Price Action and Spot Market Performance
In the spot market, Ethereum was last trading at $4,234, down just 0.61% in the last session. The price action has mirrored the open interest trends, with both metrics hitting new highs in recent weeks.
This price strength is backed by major network upgrades. The recent Pectra upgrade improved staking flexibility and network efficiency, while the earlier Dencun hard fork has caused transaction costs on Layer 2 networks to fall by up to 90%. With nearly 30% of all ETH now staked, the available liquid supply on the market is tightening.
Remember this rally? Here’s our news report on the rally that first took ETH to $2,700.
Institutional and Regulatory Factors
Spot Ethereum ETFs, launched in July 2024, have attracted ongoing inflows, with $2.18 billion recorded in a single week and cumulative volumes surpassing $117 billion by July 2025. Institutional accumulation has also increased, with entities such as Bitmine Immersion Technologies reported holding 1.2 million ETH.
Additionally, regulatory clarity has improved following the resolution of the Ripple-SEC case, the U.S. administration’s policy changes permitting crypto in 401(k) plans, and Europe’s MiCA licensing framework. These developments have supported institutional market participation.
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