Ethereum Derivatives Volume Hits Record Highs Amid Speculative Frenzy on Binance

Ethereum (ETH) trading volume has soared to elevated levels, driven primarily by speculative activity in derivatives markets rather than organic spot demand. The open interest in ETH derivatives rapidly recovered to over $18 billion, growing by 5.5% in 24 hours, a pace that outstripped Bitcoin's recovery. This cycle's open interest already surpasses the 2021 bull market peak, indicating a structural shift toward speculation.

Binance dominates the market with $7.1 billion in ETH open interest, centralizing risk and increasing the potential for dramatic liquidations. In the last 24 hours, Ethereum saw $90.64 million in short position liquidations, with Binance leading this activity. Despite a price rebound from a dip to $3,000 to $3,615.63, ETH remains range-bound due to liquidity constraints.

Market analysis reveals accumulation of long positions with support at $3,300, while short positions create resistance up to $3,700, making a short-term move to $4,000 unlikely. ETH's market cap dominance is 11.9%, and it trades at 0.034 BTC, highlighting its higher volatility and quicker recovery compared to Bitcoin. The concentration on Binance, alongside Hyperliquid's smaller $1.8 billion share, underscores the risks in Ethereum's evolving derivatives infrastructure.