Open interest in Binance’s ethereum futures hit its highest level in 9 months. As ethereum broke above $2,700, derivatives market participation also appeared to be expanding.

On Sept. 21, blockchain media outlet U.Today cited CryptoQuant data as saying ethereum open interest on Binance rose to $6.58 billion.

Open interest stood at around $4.8 billion in late August, and rose about 37 percent in less than a month. That was an increase of $1.78 billion, and futures trading that had shrunk amid market volatility in recent months is showing signs of renewed activity.

Open interest reflects the size of futures contracts that have not yet been liquidated or reached expiry. An increase is typically interpreted as more new positions, but dollar-denominated open interest is also affected by rises in the underlying asset’s price. That means it is difficult to view the entire increase as new money flowing in.

The rise in open interest coincided with gains in ethereum’s price. As ethereum held above $2,700, expectations of further gains grew and position sizes in Binance’s futures market increased.

Markets are seeing rising expectations that ethereum will challenge $3,000 again, based on a trend of both its price and open interest rising together. Open interest includes both long positions betting on gains and short positions betting on declines, making it difficult to conclude the market’s direction from this indicator alone.

The expansion in positions could also raise short-term volatility. If prices swing sharply while leveraged trading has accumulated, forced liquidations could follow and amplify gains or losses.

A key question is whether spot buying can support further gains. To judge whether rising open interest will lead to a sustained uptrend, spot trading volume and perpetual futures funding rates must also be examined. If leveraged positions build up without sufficient growth in spot demand, liquidation pressure could rise during a price correction.