Amr Taha
Ethereum Shorts Build on Binance Despite Price Recovery, With Net Taker Volume at -$585M
Ethereum’s latest rebound is facing heavy resistance from derivatives traders, but that may actually strengthen the short-term bullish case. Binance derivatives data shows that traders are still aggressively fading ETH’s upward move, even as open interest continues to rise. This type of setup often creates a fragile market structure for short sellers. The clearest signal comes from ETH Cumulative Net Taker Volume, where cumulative net taker volume has dropped to around -$585 million. This is the deepest negative reading since March 27, when the metric reached roughly -$340 million. In simple terms, taker selling pressure is now much stronger than it was during the previous comparable downside reading. At the same time, Binance open interest has increased from around $2.46 billion to $2.9 billion during the first week of May. That means new positions are being added while taker flow remains deeply negative. When open interest rises alongside strong negative taker volume, it often suggests that traders are actively building short exposure rather than simply closing long positions. If ETH fails to move lower despite this level of aggressive selling, the market may be absorbing the pressure. In that case, the growing short exposure could become potential fuel for a short squeeze if price pushes higher. Another key point is that CVD has remained almost stable around $4.4 billion during the same period. Funding rates also support this view. Ethereum funding rates on Binance have remained in negative territory since the beginning of February, showing that bearish positioning has persisted for months. Current funding levels are even lower than the levels recorded around April 7, 2025, reinforcing the idea that traders are still willing to pay to stay positioned against ETH. For now, the data suggests that Ethereum’s rally is still being doubted by derivatives traders. But that doubt may be exactly what gives the move more room to continue.