ETH Open Interest Decreases Sharply: Leverage Exits the Game and Sets the Stage for a New Volatility

Since August, the open interest of ETH has fallen by nearly half. This is not short term noise, nor is it a random figure. This clearly reflects that leverage is leaving the market. Leverage Retreat, Large Capital Reduces Risk When open interest falls sharply like this, the message is quite clear: Large positions have been closed. Risk exposure has been reduced. Major players are actively scaling down. Speculative activity has noticeably cooled. In other words, the market is no longer dominated by short term expectations and high leverage as it was in the previous phase. ETH is Trading in a “Light” Market At the current time, ETH is moving in an environment characterized by: Less leverageLess fuel for strong squeezesFewer forced movements due to liquidations This often leads to slower price action, narrower ranges, and a feeling of “boredom” for most short term traders. Short Term: Sideways, Price Compression, Difficult to Make Profit In the context of low open interest: Prices are likely to move sideways, consolidating. The short term trend lacks clarity. Fake breakouts are appearing more frequently. Scalping strategies are becoming less effective. This is a phase that causes many people to lose patience, leave the market, or overtrade. But the important thing that many people forget Market history shows a very notable thing: 👉 Whenever the open interest is reset strongly like this, it often paves the way for the next big movement. When the leverage has been removed: The market becomes cleaner. The liquidation pressure decreases. The subsequent price movement is often proactive and not forced. Major, sustainable increases or decreases usually do not start when the market is too hot, but begin after such cooling periods. Conclusion ETH currently can: Slow Choppy Difficult to trade But this “lightness” is quietly laying the foundation for the next real wave of volatility. The question is not when the market will explode, but who has enough patience to stay when it happens.