Ethereum Price Forecast: Derivatives Demand Cools After Short-Squeeze Rally

BitcoinWorld Ethereum Price Forecast: Derivatives Demand Cools After Short-Squeeze Rally Ethereum’s derivatives market is showing a notable shift in trader sentiment, with demand cooling after a short-squeeze rally pushed prices higher in recent sessions.

As of the latest data, open interest in ETH futures has declined by approximately 8% from its peak, while funding rates have normalized, indicating that leveraged long positions are being unwound.

Derivatives Data Points to Reduced Speculative Interest The cooling in derivatives demand follows a period of intense short covering that briefly lifted Ethereum above the $3,200 level.

According to data from major exchanges, the funding rate for perpetual contracts has dropped from a high of 0.05% to near zero, suggesting that the market is no longer paying a premium for long exposure.