Ethereum Surges Past $3,100 Amid Derivatives Squeeze on Binance

Date: January 3, 2026

Derivatives Activity Drives Price Breakthrough

Binance ETH open interest posted one of its biggest single-day increases in recent months, reaching roughly $8.24 billion. The spike aligned with Ethereum’s breakout above $3,100 — a key resistance level tested repeatedly in prior attempts.

CryptoQuant’s metrics showed most new positions were entered through market buys, not limit bids, indicating strong buy-side conviction and urgency among traders. Such patterns typically accompany powerful upside momentum or fear of missing out.

The breakout triggered a wave of short liquidations around the $3,100 mark. Coinglass data revealed total crypto market liquidations near $124 million, with Ethereum shorts accounting for approximately $6.99 million.

Leverage-Driven Rally Raises Volatility Concerns

This move marks Ethereum’s first decisive push above $3,000 in 2026, following a consolidation range between $2,900 and $3,000 through late December. By mid-afternoon Pacific time on January 2, ETH traded at $3,040, up 1.88% on the day.

Funding rates on ETH perpetuals rose to 0.01% on Binance, highlighting increased leverage. Analysts cautioned that this leverage-based rally could amplify volatility if buying momentum weakens or profit-taking sets in.

Traders are now focused on whether Ethereum can sustain levels above $3,100 or face a pullback toward the $2,900 support zone as derivative pressures unwind.