ETH open interest falls to 3-year low: What does it mean for Ether price?

CoinTelegraph

by Nancy Lubale

February 13, 2026

AI-Generated Deep Dive Summary

Ether's open interest has dropped to its lowest level in three years, sparking speculation about potential market movements. This decline, coupled with falling futures funding rates, could create conditions for a significant short squeeze on bearish positions, potentially driving ETH prices up to $2,500. The recent rebound above $2,000 and the extended gains following cooler-than-expected US CPI data have positioned ETH/USD for its first bullish weekly close since mid-January. These developments are fueling optimism among traders about a rally toward the $2,500 mark. The drop in open interest reflects reduced leverage across exchanges, indicating that traders may be unwinding positions amid market uncertainty. This trend has been particularly pronounced in futures markets, where funding rates have also declined. Such dynamics often precede short squeezes, as liquidations of leveraged bearish bets can lead to sharp price increases. The recent rally above $2,000, driven by positive macroeconomic data and improved risk sentiment, has further bolstered this possibility. The broader crypto market is closely watching Ether's movements due to its dominance in the sector. A successful rally could not only benefit ETH holders but also set a positive tone for other cryptocurrencies. Analysts suggest that a sustained push above $2,000 could signal long-term bullish momentum, aligning with technical indicators like weekly candle closes and Relative Strength Index (RSI) improvements.

Verticals

cryptoblockchain

Originally published on CoinTelegraph on 2/13/2026