Ethereum Funding Rates Surge, Indicating Potential Market Shifts

According to Odaily, Matrixport's latest chart analysis reveals that Ethereum's funding rate has surged to 13.7%, marking the highest level since February this year. This increase is often seen as a positive signal by the market, potentially attracting more inflows into Ethereum ETFs. However, a more significant indicator is the futures open interest, which is nearing its historical peak from December 2024. This suggests that the current price rise is driven mainly by leveraged futures traders rather than spot buyers. In contrast to Bitcoin, which remains dominated by spot demand, Ethereum's market behavior is diverging. There has been a recent surge in bullish options buying, combined with gamma hedging effects, which exposes ETH to a noticeable gap risk. The market is becoming increasingly fragile and sensitive to momentum shifts.