Ethereum CME Futures Open Interest Hits Record $7.85B – Is ETH Overheating?

Ethereum is experiencing a powerful market cycle resurgence, rallying over 175% since late April. Open interest on CME Ethereum futures has reached an all-time high, indicating significant institutional engagement. This surge in derivatives exposure suggests traders anticipate further substantial price movements. While the overall trend is bullish, some analysts caution about potential overbought conditions and a possible correction. Recent legislative wins in the US, like the GENIUS Act, are creating a more favorable regulatory environment for Ethereum. This clarity is expected to boost Ethereum-based applications, particularly in decentralized finance. Ethereum has also demonstrated strength against Bitcoin, leading the current market cycle. Technically, ETH has broken through a key resistance level, now trading near $3,753. Major moving averages are in a bullish configuration, and trading volume confirms strong conviction. Despite temporary overextension, the bullish structure remains intact as long as ETH stays above $2,850.