Analysis: Ethereum Funding Rate Surges to 13.7%, Reaching a New High Since February, Leveraged Trading Becomes the Dominant Force

Matrixport stated that the Ethereum funding rate has surged to 13.7%, reaching a new high since February this year. This is typically interpreted by the market as a positive signal, potentially attracting more capital inflows into Ethereum ETFs.

However, what is more noteworthy is that the open futures contract volume is approaching the historical peak of December 2024, indicating that the main driving force behind this round of price increases comes from leveraged futures traders rather than spot buyers.

Compared to Bitcoin, which is primarily driven by spot demand, Ethereum's trend has shown a divergence. The recent surge in bullish options buying, combined with the gamma hedging effect, has led to a clear risk of a gap-up for Ethereum. The market has become increasingly fragile and sensitive to momentum changes. Analysts believe that the dominant position of leveraged trading may lead to increased market volatility.