Binance ETH futures open interest hits three-month low

Open interest in ETH perpetual futures on Binance has fallen to approximately $4.16 billion, its lowest level in about three months, according to on-chain analyst Arabchain. In a contribution to CryptoQuant, the analyst noted that open interest had exceeded $7 billion just a few months ago but began to decline in early February. During the same period, the price of ETH also dropped from over $3,000 to its current level of $1,650. Arabchain explained that despite a rebound attempt in March and April, open interest continued to fall without recovering to previous levels. However, the analyst emphasized that a decrease in open interest also lowers the risk of large-scale forced liquidations caused by speculative demand and high leverage. Arabchain concluded that the future movement of this metric will be a crucial indicator for determining whether liquidity and trading momentum are returning to the market.