Ethereum's recent price gains are driven primarily by leveraged derivatives trading and ETF inflows, but real investor participation is weak, making the rally fragile. Despite Ethereum's rising prices, most momentum comes from the derivatives market, with trading volumes far surpassing spot volumes. From July 10 to 17, daily futures trading reached up to $65.3 billion, while spot trading remained below $3 billion. The enthusiasm behind recent ETF inflows, totaling $1.78 billion, likely stems from basis trades rather than strong long-term belief in Ethereum's future. These trades are hedged, creating sell pressure on derivatives and artificially inflating ETF flows. The surge in basis returns indicates heightened speculative activity, which could lead to rapid reversals if market conditions shift. To maintain its rally, Ethereum requires genuine long-term investment and demand, which currently are lacking.