Ethereum’s perpetual futures funding rate has surged to 13.7%, marking its highest level since February 2024. This significant increase points to strong bullish sentiment among traders and suggests potential capital inflows into Ethereum-based exchange-traded funds (ETFs).
Concurrently, open interest in Ethereum futures contracts is approaching levels last seen in December 2024. This convergence indicates leveraged futures traders are currently the primary force driving recent price momentum.
Market dynamics for Ethereum are diverging from Bitcoin. Traders are increasingly purchasing call options and engaging in gamma hedging strategies. This activity introduces heightened gap risk and contributes to increased market fragility.
The substantial surge in leveraged trading activity makes Ethereum’s price more susceptible to abrupt shifts in momentum. Analysts caution that this elevated leverage environment warrants careful attention from investors due to the potential for sharp price reversals.