Ethereum trading activity rises as speculative bets increase

Ethereum (CRYPTO:ETH) has seen a surge in speculative trading, with reserves on derivative exchanges reaching 11.28 million ETH, marking the highest level in over a year, according to CryptoQuant.

This increase signals growing participation by traders placing leveraged bets on Ethereum’s price direction.

Despite this, ETH has struggled to maintain positive momentum, with a 6% decline over the past week, trading at $3,123 at press time.

The rise in derivative exchange reserves indicates that speculative traders are positioning for potential price moves.

Additionally, the derivative exchange supply ratio is at 0.09, its highest level since April, suggesting that 9% of Ethereum's total circulating supply is held in derivative platforms.

This points to an increasing influence of derivative market activity on short-term price movements.

Open interest for Ethereum has reached a record $18.31 billion, according to Coinglass, reflecting a notable increase of over $4 billion since the beginning of November.

Higher open interest typically signifies increased trading activity and potential price volatility.

When funding rates remain positive alongside rising open interest, it shows that more long positions are being opened than shorts, hinting at a bullish bias in the market.

However, the overall sentiment remains mixed.

While speculative interest and long positions suggest optimism, data from Market Prophit indicates that general sentiment surrounding Ethereum continues to lean bearish.

This bearish outlook could limit upward price movement and dampen demand needed for a strong recovery.

At the time of reporting, the Ethereum (ETH) price was $3,110.22.