Ethereum Rally Na Fueled By Derivatives, Weak Spot Demand
Ethereum rally na dey guided by leveraged derivatives and delta-neutral ETF basis trades no be spot demand. From July 10 to 17, ETH futures and perpetual volumes jump to $39.5–$65.3 billion every day, well pass the about $3 billion wey dey spot trades. Record $1.78 billion ETF inflows show say na arbitrage positions dey: traders dey long ETFs but short futures. The 30-day annualized ETH basis return don climb reach 14%, the highest since March, meaning say big leverage dey involved. Without real spot buying and steady long-only inflows, the rally fit be weak to funding rate reversals or sudden volatility rise. Traders suppose dey monitor funding rates, open interest, and spot volumes to notice signs of structural risk and possible sudden corrections. Ethereum traders make dem dey alert to changes for funding rates and open interest to manage trading risk.
Bearish
Di tori dem show say Ethereum rally na mostly synthetic, e dey driven by leveraged derivatives plus ETF basis trades instead of real spot demand. Dis kind structure fit make sudden liquidation happen if funding rates reverse or volatility jump high. For short term, aggressive leverage fit keep price high, but if no real spot buying, any bad move for funding rates or open interest fit cause sharp ETH sell-off. For long term momentum to last, e go depend on real spot inflows and long-only positions.