u.today
The broad crypto market is once again building momentum amid the ongoing price rallies as the Fear of Missing Out (FOMO) appears to be hitting the market again.
On Tuesday, crypto analytics platform Santiment shared data revealing that Ethereum's funding rate is showing rising greed signals.
$ETH/$BTC ratio soars
After surging as high as $2,391 earlier today, Ethereum has seen its dominance over Bitcoin hit the highest level since late January. As such, the $ETH/$BTC ratio has surged to its multi-month high.
While this shows that Ethereum has begun to outperform Bitcoin after weeks of extremely poor performance, Ethereum has suddenly regained its strength against Bitcoin.
To further back its strength, Ethereum's ability to outperform Bitcoin has been spurred by a sharp surge in funding rates across major exchanges.
This suggests that speculative demand is surging rapidly alongside increased leverage. With this move, it appears that traders are increasingly opening long positions amid rising confidence.
FOMO returns to market
While the sudden increase in the funding rate has coincided with a market FOMO, traders are aggressively chasing upward momentum.
This appears to have triggered the rapid Ethereum price surge, as its price has surged by nearly 10% over the last 24 hours.
Nonetheless, analysts warn that this could also raise the risk of sudden volatility if positions become overcrowded.
While Bitcoin has only surged by about 5% over the same period, the bigger gains recorded by Ethereum suggest that altcoins may have begun to draw market attention and the market may already be entering its altcoin season.