Matrixport: Leverage is the main driver of the current Ethereum price trend

Matrixport's daily chart analysis reports that Ethereum's funding rate has surged to 13.7%—the highest level since February, which typically attracts inflows into Ethereum ETFs, often seen as a positive signal. However, a more important signal is that the open interest in futures is approaching the peak of December 2024, indicating that leveraged futures traders, rather than spot buyers, are the main drivers of the current price trend. This contrasts sharply with Bitcoin, where spot demand remains the primary driver. Exacerbating this situation is the surge in bullish options buying, with the resulting Gamma hedging introducing significant gap risk to ETH price movements. The market is becoming increasingly fragile and highly sensitive to further momentum changes.