#MarketRebound

Ethereum Surges to $2,800—Driven by Leverage, Not Fundamentals, Says Matrixport

Ethereum ($ETH ) has surged to $2,800 in the past 24 hours, sparking speculation that it may soon break the $3,000 barrier. However, according to digital asset services firm Matrixport, the rally is being driven more by leveraged trading than by strong fundamental demand.

In a recent post on X, Matrixport pointed out that Ethereum’s funding rate has jumped to 13.7%, the highest level since February 2025—indicating a surge in long positions in the futures market. The firm also noted that open interest (OI) in ETH futures is nearing its December 2024 peak, reinforcing the view that the rally is speculative in nature.

“Ethereum’s current rally is not fueled by spot market buying, but by increased leverage in the derivatives market,” Matrixport stated.

Additionally, a spike in ETH call options suggests heightened bullish speculation. In comparison, Bitcoin’s recent strength appears to be supported primarily by spot market demand and ETF inflows, making its rally more fundamentally grounded.

Summary:

ETH funding rate hits 13.7%, highest since February.

Futures open interest nears all-time highs.

Rally is driven by leverage, not spot buying.

ETH options activity shows speculative interest.

Bitcoin remains spot-driven, ETH is derivatives-driven.

While the price momentum is strong, traders should be cautious—as leverage-fueled rallies often come with increased volatility and risk of sharp corrections.