The perpetual-term funding rates for Ethereum have reached levels not seen since the global liquidation event in August, causing concerns about potential long-leveraged liquidations. Derivatives trader Gordon Grant warns that the crypto futures market remains vulnerable to sell-offs driven by over-leveraged positions and a mix of technical and macroeconomic factors. Grant points out that changes in market participant behavior, highly leveraged positions, and various external factors could trigger or worsen a sudden market decline, similar to the events of August 2023. The current funding environment could lead to sharp declines in ETH and other cryptocurrencies if liquidations occur, potentially causing significant losses and adverse market conditions.



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