Ethereum’s recent gains are largely powered by leveraged derivatives trading and basis-driven ETF flows. Real investor participation remains weak, making the rally structurally fragile.

Ethereum [ETH] is climbing again, but the foundations of this rally look shaky.

While prices are up, most of the momentum is coming from leveraged bets in the derivatives market rather than steady spot buying.

Even inflows into ETH ETFs, once seen as a bullish signal, appear to be driven more by short-term trading strategies than long-term conviction.

As Ethereum’s price tests new highs, the question now is whether the rally can hold without stronger backing from real investors.