Ethereum’s Derivatives Market on Binance Signals Potential Short Squeeze
- Since February, approximately 350,000 ETH has been added to open interest on Binance, representing about 37% of the total market share.
- Despite a +35% price increase since February’s low, most investors are shorting the market.
- Funding rates on Binance have remained mostly negative since late January, indicating continued bearish sentiment.
- Over $3 million in short positions were liquidated twice within an hour on Binance due to modest price increases.
- Funding rates are beginning to turn positive again, with a recent reading around +0.01%.
The Ethereum derivatives market on Binance is experiencing significant short positioning despite a notable price rebound from February lows. This setup could lead to further short squeezes if prices continue to rise and bearish sentiment persists.
With $350,000 ETH added to open interest and negative funding rates, the market shows potential for upside pressure as shorts become vulnerable to liquidation events. (Source)
