[DigitalToday reporter Yoonseo Lee (이윤서)] Ethereum is flashing stronger rebound signals as it nears a return to the $2,800 level.

Cryptopolitan, a blockchain media outlet, reported on Sept. 22 that a key signal behind Ethereum's recent rise is expanding open interest in the derivatives market.

Ethereum rose to around $2,770 amid a broader upswing in the cryptocurrency market. Trading volume reached $21.9 billion, near the upper end of the past month’s range, and its cumulative gain for the third quarter was tallied at 74.6 percent. It is setting a higher price range in the third quarter after two consecutive weak quarters.

The uptrend has continued in September. Ethereum is up about 11 percent this month, and market sentiment shifted from fear to greed, with the indicator rising to 70. Ethereum's strength also coincided with a trend in which some tokens outperformed bitcoin, linking to a broader recovery in the cryptocurrency market.

In the derivatives market, Binance's share stood out. Total exchange open interest in Ethereum rose to $16 billion on CryptoQuant data, of which $6.8 billion accumulated on Binance. Binance's Ethereum open interest recovered to its highest level since January, and the pace of gains has accelerated in recent weeks.

The position mix is not one-sided. Binance is an exchange where short positions account for nearly 50 percent, with short positions built up to the $2,800 range. Under the current structure, there is not a strong likelihood of a sharp short squeeze at higher prices. Instead, if prices rise further, volatility could increase as forced liquidations grow.

Even so, the market is quickly rebuilding positions after liquidations. Ethereum derivatives trading had been stagnant for some time but has gradually revived since the last quarter, and a renewed risk appetite has recently been confirmed. Ethereum is among the assets leading the expansion in open interest, with bitcoin and solana also showing notable growth in positions.

Spot buying has also been seen. Bitmine recently increased its accumulation of ETH and now holds 4.9 percent of Ethereum's supply.

On-chain data also showed large buyers absorbing liquid supply released into the market. Recently, a Hyperliquid whale sold 1,107 BTC over several days, then bought spot Ethereum and staked it.

Available supply on exchanges is declining instead. Ethereum remaining on exchanges stands at about 14.8 million tokens, of which Binance holds about 3.8 million. The decline in exchange balances while supply increases points to rising spot demand.

The market is wary that even if Ethereum maintains its rebound, moves could emerge that shake out long positions in that range first. The focus is therefore on whether Ethereum can settle above $2,800 and whether open interest built up mainly on Binance will lead to further gains or instead feed into higher volatility.