Ethereum's price surged to $3,444 on November 12, marking its highest level since July. This rise followed Bitcoin's record high of $89,957. However, the funding rate for Ether skyrocketed to 6.1% per month, its highest in eight months, raising concerns about a potential price correction. Normally, such elevated funding rates signal excessive leverage and potential pullbacks as traders may short the asset to capture the funding rate. Despite this, data from the Ether options market shows a neutral sentiment among investors, with the delta skew not exceeding negative 6%, indicating that the high funding rate may not reflect an overheated market. Furthermore, a recent influx of $513 million into spot exchange-traded funds signifies strong demand in the spot market, differentiating from the leveraged derivative market. Currently, there are no clear signs of imminent cascading liquidations should Ether's price decline to $3,070, an 11% drop from its latest high.

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