It’s been a terrible month for crypto from all angles. Open interest for ETH futures and options is down nearly 40% since the start of September. The market is crippled by fear, but, thankfully, there is a silver lining.
Options open interest fell as dramatically as it did at the end of this month due to a large number of recent expiries (September monthlies, Q3 quarterlies). Further, given the amount of open interest wiped out, this is indeed a meaningful deleveraging, giving ETH more room to push towards the upside. That is, once the fear starts to subside.