This does not appear to be a fungus. The image is blurry when viewed enlarged, so it is hard to definitely say, but it is perhaps one of 2 possibilities - a scale insect or egg sac of an insect, perhaps a spider.

There are a number of scale insects that are observed in our region. IF the infestation is not extensive, then natural predators may control them. Scale pests can also be managed with sprays of horticultural oil - this is a highly refined product, is environmentally friendly and if used according to label directions is effective. However, for treatment of a tree, this may not be practical or feasible, depending upon the degree of infestation. In that case, a systemic insecticide labeled for use on scale insects and on this type tree is an option.

https://www.clemson.edu/extension/hgic/pests/plant_pests/shrubs/hgic2059.html

Review Extension publication at this site for additional information and help in positive identification: