Ethereum Has Started to Rise Again! Analysis Company Revealed the Reason Behind the Rise in ETH!

The largest altcoin Ethereum (ETH) has risen to the $2,800 level in the last 24 hours. While the market is expected to break the $3,000 level for ETH and rise above it, the analysis firm evaluated ETH's recent rise.

According to this, the analysis company Matrixport stated that the recent rise of Ethereum is not based on fundamental factors but on leverage.

Matrixport emphasized in its latest analysis from account X that the rise of Ethereum is driven more by the leveraged trading market than the spot market.

Analysts noted that the funding rate of ETH has risen to 13.7%, the highest level since February, indicating that this level usually signals a bullish trend and attracts institutional investors, drawing in ETH ETF inflows.

According to analysts, more importantly, the open interest of ETH futures is approaching the December 2024 peak, which indicates that the rise of ETH is being led not by spot buyers but by leveraged trading investors.

"The current Ethereum rally is based on leveraged futures trading, not spot trading.

Ethereum open interest (OI) is close to the highest level in December of last year. Additionally, the Ethereum funding rate has risen to 13.7%. This is the highest level since February.

Matrixport analysts recently noted a sharp increase in ETH call options as well. At this point, analysts comparing Ethereum with Bitcoin stated that ETH is driven more by the leveraged market rather than spot demand, while Bitcoin continues to be primarily driven by spot demand.

*This is not investment advice.

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