Key Takeaways:
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ETH futures and market options show a doubt despite ETF inflows spots and increasing TVL numbers.
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Layer-2 growth and lower fees are not translated with increasing demand for ETH or prolonged price momentum.
Ether (Eth) The price rallyed 13.5% in two days, reaching $ 2,925 on Thursday, but entrepreneurs remain unbelievable about a close move above $ 3,000. Despite the recent bullish momentum, ethical derivatives markets show a lack of confidence, increasing doubts among entrepreneurs about the potential for further gains.
The ether Monthly futures The premium is currently standing 5%, sitting on the side between neutral and bearish territory. While that was an improvement from the earlier week of 3.5% premium, the last known bullish signal was on January 23, when ETH exchanged more than $ 3,300. Professional entrepreneurs are less pessimistic today, but are still far from trusting a long price rally.
The Ethereum Layer-2S has evolved, but the lower fees failed to boost ETH demand
ETH still dropped 41% from all times high in November 2021, which slightly explains a careful outlook. More importantly, Ethereum network fees refuse, reducing ETH combustion rate. Since Ethereum’s built-in mechanism of combustion Depending on the network activity, lower use means more ETH remains in circulation, putting down pressure on the price.
Over the past 30 days, Ethereum network fees have fallen 22% to $ 34.8 million, according to Nansen data. Although this trend affects most of the blockchain sector, ethical investors have failed. That’s because the increase in total amount locked (TVL) is not translated into a higher demand for the ETH itself.
TVL on the Ethereum network rose from $ 50 billion three months ago to $ 73 billion to Thursday. However, the amount of trade in the decentralized exchange (Dex) dropped to a nine -month low. Although the previous Memecoin Frenzy is uncertain, many ETH investors hope that increasing activity will continue for longer.
Ethereum’s Layer-2 ecosystem has performed better than expected, making up $ 58.6 billion in Dex volumes in the past 30 days. However, moving to lower rollup fees by data blobs does not significantly strengthen demand for ETH.
By comparison, Solana holds a TVL 86% lower than Ethereum, but has managed to generate $ 25.3 million in network fees. The 30-day Tron fee is 60% higher than Ethereum’s.
To determine if this lack of confidence is specific to the future, it is advisable to look at the options market. When entrepreneurs are looking for reversible exposure through call options, Delta skew usually decreases below neutral -5% to +5% range. Conversely, demand for downside protection drives a higher measure.
Currently, ETH options sit at -3%, suggesting a balanced interest between bullish and bearish techniques. This has happened in the last four weeks and represents a moderate improvement from last week’s reading of +1%.
Related: Eth News Update – Treasury purchases can be rally -raised at $ 3K
Recent ETH price acquisitions appear to be largely driven by a four-day net of $ 468 million in funds listed in the US (ETF). Additional Supporting Factors are ETH Purchase SHAPLINK GAMING (SBET) and Bit digital (BTBT) as part of their treasury techniques.
However, it remains unclear whether institutional demand will continue. So far, ETH derivatives reflect the limited conviction of a long rally.
This article is for general information purposes and is not intended to be and should not be done as legal or investment advice. The views, attitudes, and opinions expressed here are unique and do not necessarily reflect or represent the views and opinions of the cointelegraph.
