ETH volume reaches record on Binance as trading becomes more speculative

Ethereum (ETH) trading volumes remain elevated, with growing activity on Binance. ETH activity is becoming more speculative, as the token provides directional trading and boosts derivative markets. 

Ethereum is becoming a speculative asset, with a rise in Binance activity and overall growth of derivative markets. Compared to previous cycles for Ether, the effect of derivative volumes is more notable. Previously, ETH spot demand drove the price, directly reflecting the ecosystem’s growth. 

The token recovered to $3,615.63 after a dip to the $3,000 level. Ether also showed a trend of quickly rebuilding its open interest. After a low of $18B in early November, Ethereum open interest recovered to over $18B. In the past 24 hours, ETH open interest recovered faster than BTC, rising by 5.5%. 

ETH still has 11.9% in market cap dominance, while trading at 0.034 BTC.

ETH quickly recovers open interest

The current ETH market cycle far surpasses the 2021 bull market in terms of derivative open interest. Growing derivative infrastructure and demand for hedging through options have changed the ETH market, leading to more speculative price moves. 

Binance remained the biggest market with $7.1B in open interest. However, the exchange is yet to recover its open interest peak from August 2025. 

ETH is more volatile compared to BTC, and also reflects more quickly the general recovery for altcoins. However, the price recovery does not necessarily reflect Ethereum adoption or on-chain activity, as during past cycles. This time, ETH valuations may depend on derivative exchanges, with renewed influence for Binance.

Binance has emerged as the main venue for high-volume trading, including spot and derivative markets. The exchange absorbs most of the new token activity, as well as speculative ETH activity. Hyperliquid is influential, but carries just $1.8B of Ether open interest. 

At the same time, the concentration of open interest on one exchange can lead to more dramatic liquidations. As a result, in the past 24 hours, Ethereum saw $90.64M in short liquidations. Binance also led the liquidation activity for the day with $7.8M in total liquidations. 

Can ETH revisit $4,000?

Based on derivative market liquidity, ETH is locked in a range, with re-accumulation of long liquidity. 

On the downside, ETH has positions down to $3,300. Short positions, however, are going up to around $3,700, signaling a move to $4,000 is unlikely in the short term. 

At its current price range, ETH sets up expectations for both a rally to a new price range, and a short-term crash. 

Ether traded at a slight premium on futures markets, signaling a potential breakout. On perpetual futures, ETH had a small discount and traded closer to $3,600.

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