Analysts from CryptoQuant and Arkham have observed unusual metrics in derivatives for the second-largest cryptocurrency.

An expert known as Arab Chain noted a decline in open interest for Ethereum on Binance, dropping to $4.99 billion from an average of $5.31 billion.

Source: Arab Chain/CryptoQuant.

The negative MVRV Z-Score (-0.91) confirms a liquidity outflow. According to the analyst, traders are hesitant to open new positions as the market lacks confidence in a rapid recovery.

Another specialist, Darkfost, identified signs of a potential short squeeze. Since hitting a local low on February 6, Ethereum's price has surged over 30%. At its lowest point, the asset had lost about 65% of its value, and the market capitalization of altcoins halved.

A Dangerous Game

Despite the recovery, investors continue to open short positions. Funding rates on Binance have remained negative for an unprecedented duration, last seen in November 2022, following the FTX collapse.

The average funding rate for the month is -0.0018, indicating that market participants do not believe in sustained growth and are anticipating a downward movement.

Darkfost described this strategy as risky, noting that the volume of short position liquidations is already increasing. Forced closures of shorts could trigger a "cascade" effect, pushing Ethereum's price even higher. The expert emphasized that the market rarely rewards the consensus of the majority.

Meanwhile, large players continue to accumulate coins. Arkham reported that Fundstrat founder Tom Lee staked 217,350 ETH, valued at approximately $508.4 million, in staking protocols.

Tom Lee just staked $508.4M ETH

Bitmine has now staked over 4 MILLION ETH (worth $9.3B) — that’s 10.5% of the total staked ETH supply.

Tom Lee is buying and staking ETH. pic.twitter.com/NofM7r0YRG

— Arkham (@arkham) May 1, 2026

The BitMine platform has increased its locked assets to 4 million ETH, which is valued at $9.3 billion at current prices.

The company now controls 10.5% of the total Ethereum supply in staking.

As a reminder, on April 10, the daily number of transactions on the leading altcoin's blockchain approached 1.3 million.