Ethereum and Bitcoin Derivatives Market Report Shows Contrasting Trends

Ethereum Perpetual Open Interest Declines Due to Long Liquidations

Recent data from Bybit and Block Scholes indicates that Ethereum’s perpetual open interest has seen a decrease, largely attributed to the liquidation of overleveraged long positions. These positions, accumulated during a period of optimism, were reset with the falling ETH spot prices.

Mixed Signals for ETH and BTC Futures Contracts

While ETH perpetual swap contracts have shown a decline in open interest, ETH futures contracts have not experienced the same trend. Both Bitcoin (BTC) and Ethereum (ETH) positioning have seen an increase, though the overall size of open positions is yet to recover from the expiration of contracts at the end of November 2024.

Options Market Favors Ethereum Amidst Declining Volumes

Ethereum continues to outperform Bitcoin in options open interest as the year-end expirations draw near. However, trading volumes have decreased, signaling a cautious market sentiment. The options term structure for ETH reflects higher realized volatility compared to future expectations, indicating a difference in sentiment from BTC.