Ethereum derivatives positioning has reset to April 2025 levels as Open Interest on Gate.io and Bybit contracted sharply between May 7 and June 9, according to a CryptoQuant analyst. Gate.io Open Interest fell from $4.84 billion on May 7 to $2.68 billion on June 9, a reduction of approximately 45%, while Bybit positioning dropped to near $805 million, matching levels last recorded on April 9, 2025. The derivatives unwind occurred as Ethereum price declined approximately 28% from recent levels, trading below $1,700, with Binance funding rates turning negative at approximately -0.0038 despite Open Interest on that exchange remaining around $2.76 billion. The leverage accumulated across exchanges throughout 2025 and into 2026 has been cleared in a compressed timeframe, returning multiple venues to market structure last seen over a year earlier.
Gate.io and Bybit Open Interest Returns to April 2025 Levels
Gate.io ETH Open Interest dropped from $4.84 billion on May 7 to $2.68 billion on June 9, a reduction of approximately $2.16 billion in just over one month. The current reading of $2.68 billion matches the $2.67 billion recorded on April 11, 2025. Bybit shows a parallel pattern, with Open Interest near $805 million, virtually matching the $795 million level from April 9, 2025. The CryptoQuant analysis identifies the simultaneous reset across two major exchanges as the key structural development, with leverage built across the subsequent period now cleared. The derivatives positioning that accumulated throughout 2025 and into 2026 has unwound during the price decline.
Binance Funding Rate Turns Negative as Open Interest Holds
Binance ETH Open Interest remains around $2.76 billion, staying close to its higher range while Gate.io and Bybit contracted sharply. The funding rate on Binance turned negative at approximately -0.0038. The CryptoQuant report notes that negative funding during a price decline indicates one of three conditions: defensive positioning from participants hedging existing exposure, short pressure from traders betting against recovery, or the absence of aggressive long conviction. The retained Binance positioning exists under a funding backdrop that reflects caution rather than the premium typically paid to hold bullish exposure.
Ethereum Price Breaks Below February Lows Near $1,670
Ethereum is trading near $1,670 after breaking below the February lows, reaching levels not seen since early 2023. The move invalidates the broad trading range that contained ETH for most of 2026. After failing to hold above the $2,250-$2,350 resistance zone, Ethereum lost the $1,800 support area that previously acted as the floor of the February-March consolidation. The breakdown triggered a move toward the $1,500 region. ETH is now trading below the 50-week, 100-week, and 200-week moving averages. The recent low near $1,500 represents the most important support level on the chart.
FAQ
What happened to Ethereum Open Interest on Gate.io between May 7 and June 9?
Gate.io ETH Open Interest fell from $4.84 billion on May 7 to $2.68 billion on June 9, a reduction of approximately $2.16 billion or roughly 45%. The current level matches the $2.67 billion recorded on April 11, 2025.
What is the current Binance funding rate for Ethereum?
The Binance funding rate for Ethereum turned negative at approximately -0.0038, according to the CryptoQuant analysis. Binance Open Interest remains around $2.76 billion despite the negative funding rate.
