$ETH According to the analysis of Michael Nadeau - Founder of DeFi Report on X (12/5), the recent price increase of ETH was driven by 3 key factors:

🔥 1. Real money flow pouring strongly into the market

  • Spot trading volume of ETH increased by 250-300%, from 4-6 billion USD/day to 15-18 billion USD/day.

  • Indicates the participation of new money flow rather than just leveraged trading.

📈 2. Majority buying with high leverage

  • Buy positions (OI) on derivatives exchanges increased by 40% in the past few days.

  • The funding rate increased from 0.005% to 0.03%, confirming the dominant long trend.

💥 3. Short squeeze effect

  • More than 85 million USD in short positions of ETH were liquidated in the recent price increase.

  • Creating a domino effect causing prices to spike more.

Market assessment:

  • The combination of real money flow + leverage + short liquidations creates a 'perfect storm' pushing ETH up.

  • ETH currently shows superior strength compared to BTC (the ETH/BTC ratio is recovering).

Risk warning:

  • When the funding rate rises high (>0.05%), the market is prone to corrections as investors take profits.

  • Closely monitor indicators: Open Interest, Spot Volume, Funding rate to identify potential peaks.

(Tip: Consider the 'buy the dip' strategy if there is a slight downward adjustment while the uptrend remains strong).