Ethereum Derivatives Positioning Contracts Amid Market Selloff

The Ethereum network has seen a significant decrease in its network-wide contract open interest over the past 24 hours. According to RootData, this figure fell by 6.96% to reach $35.419 billion as derivatives traders adjusted their positions amid a broader market selloff.

The decline in open interest indicates a contraction in derivatives positioning, with ETH price falling below $2,200 and the crypto Fear & Greed Index entering Extreme Fear territory. This suggests that traders are closing positions, whether voluntarily or through liquidation, as they reassess their risk tolerance.