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Ethereum (ETH) recorded a significant loss in price this week following the trading debut of Ethereum spot ETFs. According to data from CoinMarketCap, ETH has declined by 6.60% in the last seven days, falling as low as $3,100. However, amidst this price crash, CryptoQuant analyst burakkesmeci has made an important observation with a potential impact on market movement. Related Reading: Ethereum Targets Recovery: Can It Mirror Bitcoin’s Performance? Ethereum Open Interest Surges By $1.5 Billion In Three Weeks In a Quicktake post on CryptoQuant, burrakesmeci shared that the Open Interest (OI) on Ethereum has risen by a remarkable $1.5 billion in the past three weeks. For context, Open Interest refers to the total number of outstanding positions for a particular asset. Generally, an increase in Open Interest indicates a rise in market participation for any asset i.e., more traders are opening long or short positions on Ethereum. With this rise in open positions, there is likely an equal increase in the number of leverage trades.  Burakkesmeci expressed that a surge in liquidations should also be expected as leveraged trades, which are open with borrowed funds, are always closed once an insufficient price margin occurs. Furthermore, This increase in leverage trading liquidations is expected to produce a high market volatility, resulting in unpredictable and rapid price movements.  In regards to price action, a rise in Open Interest indicates the current market trend is gaining stronger. Therefore, despite Ethereum’s price dip in the last week, the prominent altcoin is likely to extend its 7.01% gain of the past three weeks in the coming months.  At the time of writing, Ethereum presently trades at $3,278.80 with a 3.46% increase in the last 24 hours. The altcoin appears to be attempting a market recovery with a strong resistance expected at the $3,500 region. However, if the current buying pressure proves insufficient to break past this barrier, Ethereum could return to the $3,100 price mark or even slide as low as $2,900. Related Reading: Ethereum Whales Rapidly Accumulate ETH Amid Price Decline Ethereum Spot ETFs Net Outflows Reach $469 Million In another development, the newly launched Ethereum Spot ETF market has now recorded a cumulative outflow of $469.83 million in its first three days of trading. Data from Farside Investors identifies Grayscale’s ETHE with a total outflow of $1.51 billion as the major cause of this current market position.   Meanwhile, BlackRock’s ETHA continues to lead the market with inflows worth $354.8 million, followed closely by Bitwise’s ETHW with $265.9 million.  Like their Bitcoin counterparts, the debut of the Ethereum spot ETF has been accompanied by a significant price drop. However, it remains uncertain whether these Ethereum ETFs will eventually trigger a price surge akin to the one experienced in the Bitcoin market during the initial two months of BTC Spot ETF trading. Featured image from Investopedia, chart from Tradingview.com