Ethereum Open Interest Sinks 50% Since August as Derivatives Leverage Unwinds Near $3,040

Since August, Ethereum open interest has fallen by about 50%, signaling a substantial deleveraging in the derivatives market and a broad reduction in leveraged risk. ETH is trading close to $3,040 while total liquidations hover around $48.5 million, with shorts contributing roughly $31.8 million and longs about $16.7 million. With leverage significantly reduced and volatility muted, Ethereum appears to be consolidating as traders wait to see how new leverage returns to the market.