PANews June 11 news, Matrixport stated that the Ether funding rate has risen to 13.7%, reaching a new high since February of this year, which is usually interpreted by the market as a favourable signal, potentially attracting more funds into the Ethereum ETF. However, what is more noteworthy is that the open interest in futures contracts is nearing the historical high of December 2024, indicating that the main driving force behind this round of price rise comes from leveraged futures traders, rather than spot buyers.
Compared to Bitcoin, which is dominated by spot demand, Ethereum's trend has shown divergence. Recently, there has been a surge in bullish option buying, combined with the gamma hedging effect, resulting in significant gap risks for Ethereum. The market has become increasingly fragile and sensitive to changes in momentum. Analysts believe that the dominance of leveraged trading may lead to increased market volatility.
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Analysis: Ethereum funding rate soars to 13.7%, reaching a new high since February, with Margin Trading becoming the dominant force.
PANews June 11 news, Matrixport stated that the Ether funding rate has risen to 13.7%, reaching a new high since February of this year, which is usually interpreted by the market as a favourable signal, potentially attracting more funds into the Ethereum ETF. However, what is more noteworthy is that the open interest in futures contracts is nearing the historical high of December 2024, indicating that the main driving force behind this round of price rise comes from leveraged futures traders, rather than spot buyers. Compared to Bitcoin, which is dominated by spot demand, Ethereum's trend has shown divergence. Recently, there has been a surge in bullish option buying, combined with the gamma hedging effect, resulting in significant gap risks for Ethereum. The market has become increasingly fragile and sensitive to changes in momentum. Analysts believe that the dominance of leveraged trading may lead to increased market volatility.