Ethereum's futures open interest reached a new all-time high, sparking concerns among traders about a possible price crash, as historical data suggests a correlation between such peaks and subsequent declines in ETH's value.

The aggregate Ether futures addressable market surpassed 5 million ETH for the first time, indicating a significant increase in demand for leveraged ETH positions, which often precedes severe price corrections.

Previous instances of open interest peaks, such as in August and April, were followed by sharp price drops in Ether, highlighting the potential for a 20% to 25% decline in the current market conditions.

However, the overall cryptocurrency market trend and factors like Bitcoin's price action could influence the direction of Ether's price, adding complexity to the analysis and requiring traders to be prepared for both bullish and bearish scenarios.

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