Ethereum Open Interest Jumps 8.2% as Traders Chase the Pump: Leverage Driving ETH Again
Ethereum Shows Signs of Recovery After Major Crash
Ethereum (ETH) is slowly recovering after a big market crash on Friday that pushed its price down to $3,450. The sell-off was part of the largest liquidation event in crypto history, wiping out billions of dollars in leveraged trades on major exchanges.
After the panic, Ethereum began to stabilize as buyers returned near key support levels. According to on-chain analyst Maartunn, traders are once again adding leverage, showing renewed confidence in the market. His data shows that open interest in ETH jumped sharply in the past 24 hours, suggesting that speculative trading is back as market volatility cools down.
This return of leverage could lead to a strong short-term rebound — but it also increases the risk of another round of forced sell-offs if momentum weakens.
Leverage Is Back — But It’s a Risky Comeback
Maartunn reported that Ethereum’s open interest rose by 8.2% in just one day, showing that traders are re-entering the market quickly after the recent crash. Many seem to be trying to “win back” their losses, creating short-term rallies and renewed volatility.
However, history shows that most of these “revenge pumps” don’t last. Around 75% of similar leverage-driven recoveries usually fade and lead to another pullback once market conditions normalize. Only about 25% continue into long-term uptrends — usually when supported by strong spot buying or institutional investment.
This means Ethereum is in a delicate position. While the rise in open interest shows that traders are active again, it also brings the risk of more liquidations if positions become too large or overleveraged. For now, Ethereum’s rebound seems driven more by derivatives trading than by real (spot) demand.
Price Outlook: Key Levels to Watch
Ethereum is currently trading near $4,150, after bouncing strongly from its 200-day moving average — an important technical support zone. This bounce suggests that buyers are trying to regain control.
However, ETH faces strong resistance between $4,250 and $4,300, an area that previously acted as support. Breaking above this zone is essential for confirming a real bullish reversal.
If ETH can stay above $4,000 with good trading volume, it could push toward $4,500 and possibly $4,750.
But if the price falls below the 200-day moving average again, Ethereum could retest $3,600 or lower.
Overall, Ethereum’s recovery looks promising but fragile — the next few days will decide whether this rebound is the start of a new uptrend or just a short-term bounce after the crash.
