Ether surged 15% from Nov. 20 to Nov. 27, nearly reaching $3,500 for the first time in four months. This rise coincided with an all-time high in Ether futures open interest, which increased by 23% in 30 days to reach $22 billion. Prominent exchanges like Binance, Bybit, and OKX dominate this futures market. However, the CME is also growing its presence with $2.5 billion in ETH futures open interest, indicating increased institutional involvement. High leverage demand does not automatically reflect bullish sentiment, as seen in various trading strategies. The current annualized premium for two-month ETH futures is at 17%, and while this suggests some bullishness, retail sector risks remain. Retail traders often operate on high leverage, leading to increased risks of liquidation; over $163 million in leveraged long positions were liquidated recently. The funding rate of ETH perpetual futures is around 2.1% per month, showing muted retail demand despite the ETH price surge, implying that the recent open interest growth may reflect institutional hedging rather than general bullish sentiment.

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