Open interest (OI) is the number of futures contracts still open. It shows how much leverage sits in the market, not which way it leans.
How I read it with price:
- Price up, OI up: new positions opening. The move has fuel
- Price up, OI down: shorts closing. Often a squeeze that fades
- Price down, OI up: new shorts, or longs adding into the drop
- Price down, OI down: positions closed or liquidated
Right now $ETH perp OI on Binance is about 2.33M ETH, with price flat near 2,500. Flat price with a lot of open positions can set up a sharp move either way.
Which do you watch more, OI or funding?
How I read it with price:
- Price up, OI up: new positions opening. The move has fuel
- Price up, OI down: shorts closing. Often a squeeze that fades
- Price down, OI up: new shorts, or longs adding into the drop
- Price down, OI down: positions closed or liquidated
Right now $ETH perp OI on Binance is about 2.33M ETH, with price flat near 2,500. Flat price with a lot of open positions can set up a sharp move either way.
Which do you watch more, OI or funding?