Ethereum’s funding rate has hit a 10-month high, soaring to 13.7%, according to Matrixport data. This surge signals a potential market shift and could attract more investors to Ethereum Exchange Traded Funds (ETFs). However, the current price rise might be driven by leveraged futures traders, as evidenced by nearing historical open interest levels. In contrast to Bitcoin’s focus on spot demand, Ethereum has displayed a diverging market behavior, with bullish options purchases increasing alongside gamma hedging effects, revealing ETH is vulnerable to sudden shifts in momentum. Consequently, the market is becoming increasingly fragile and sensitive to price fluctuations.