Matrixport’s latest analysis reveals that Ethereum’s funding rate has escalated to 13.7%, reaching its highest level since February 2024. This uptick is widely regarded as a bullish indicator, potentially driving increased capital inflows into Ethereum-based ETFs. However, the more critical insight lies in the surge of open interest in Ethereum futures, nearing the peak recorded in December 2024. This trend underscores that leveraged futures traders, rather than spot market participants, are predominantly fueling the recent price momentum.
In contrast to Bitcoin, which continues to be primarily influenced by spot demand, Ethereum’s market structure is evolving with a notable rise in call option purchases. This activity, coupled with gamma hedging strategies, introduces heightened gap risk for ETH. As a result, Ethereum’s price dynamics have become more vulnerable to abrupt momentum shifts, signaling increased market fragility and necessitating cautious investor attention.