The value of the largest alternative currency, Ethereum ($ETH
), to $2800, achieving its highest level in the past 24 hours. While the market expects Ethereum to surpass the $3000 mark, the analytics company evaluated the recent rise in Ethereum.
Accordingly, the analytics company Mat,rix,,port stated that Ethereum's recent rise is due to leverage rather than fundamental factors.
In its latest analysis, it indicated that outflows of Ethereum were driven by the leveraged trading market rather than the spot market.
Analysts noted that the funding rate for Ethereum rose to 13.7%, the highest level since February, and this level is generally considered a bullish indicator, attracting flows from Ethereum exchange-traded funds through institutional investor participation.
The most important thing is that the open interest in $ETH futures contracts is approaching its peak in December 2024, according to analysts, indicating that leveraged investors, not spot buyers, are driving the rise in $ETH .
The current rise in Ethereum's price depends on trading leveraged futures contracts, not on spot trading.
"The open interest in Ethereum (OI) reached its highest level ever since December last year. The funding rate for Ethereum also rose to 13.7%, the highest level since February."
Analysts have recently noted a sharp increase in Ethereum call options. At this stage, analysts comparing Ethereum and Bitcoin stated that Ethereum is driven by the leveraged market rather than immediate demand, while immediate demand for Bitcoin is still primarily driven by spot demand.
*This is not investment advice.
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