Matrixport: Leverage is the main driving force behind the current Ethereum price movement.

[Matrixport: Leverage is the main driving force behind the current Ethereum price movement] Matrixport released daily chart analysis stating that the funding rate of Ethereum has soared to 13.7%—the highest level since February, which usually attracts capital inflow into Ethereum ETFs, and such inflows are generally seen as a favourable signal. However, a more important signal is that the open interest in futures contracts is approaching the peak of December 2024, indicating that leveraged futures traders, rather than spot buyers, are the main driving force behind the current price movement. This stands in stark contrast to Bitcoin, where the spot demand remains the main driving force. Contributing to this situation is the surge in bullish options buying, which is introducing significant gap risk to the ETH price movement due to the resulting gamma hedging. The market is becoming increasingly fragile and is extremely sensitive to further momentum changes.