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The largest altcoin Ethereum ($ETH) has risen to $ 2,800 with the rise it has experienced in the last 24 hours. While the market is expecting $ETH to break and exceed the $ 3,000 level, the analysis company evaluated $ETH's recent rise.
Accordingly, analytics firm Matrixport said that Ethereum's recent rally was due to leverage and not fundamentals.
In its latest analysis from the X account, Matrixport highlighted that Ethereum’s outflow was driven by the leveraged trading market rather than the spot market.
Analysts stated that the $ETH funding rate rose to 13.7%, the highest level since February, and that this level is generally a bullish sign and attracts $ETH ETF inflows by mobilizing institutional investors.
More importantly, $ETH futures open interest is approaching its December 2024 peak, according to analysts, suggesting that leveraged investors, not spot buyers, are leading the $ETH rally.
“The current Ethereum rally is based on leveraged futures trading, not spot trading.
“Ethereum open interest (OI) is near its all-time high from December of last year. Ethereum funding rate has also increased to 13.7%. This is the highest level since February.”
Matrixport analysts recently noted a sharp increase in $ETH call options. At this point, analysts comparing Ethereum and Bitcoin stated that $ETH is driven by the leveraged market rather than spot demand, while Bitcoin continues to be driven primarily by spot demand.
*This is not investment advice.