Ether (Eth) fell 13% between March 8 and March 11 as investors moved into short -term revenue and cash positions, seeking safety amid a global tariff war and rising fear of a collapse of the economy.
ETH price requires 29% obtained to recover $ 2.5k
Market concerns rise after the United States responds to Canada’s electricity surcharge Steps in retaliation.
S&P 500 futures (left, magenta) compared to ether/USD (blue). Source: TradingView/Cointelegraph
Usually, merchants tend to perform, increasing the likelihood that Ether will rebuke faster than other owners as soon as the market sentiment improves. While some argue that the risk of risk is driven by inflation and economic growth data, others believe that the gains depend on stimulus steps and financial expansion.
Regardless of the catalyst for the next bull run, the ether price must climb 29% from the current $ 1,940 level to recover $ 2,500. This step is likely to require an increase in demand from leveraged buyers, whose activity is at its lowest point in five months.
Eth 2-Month Futures Annacialied Premium. Source: Laevitas.ch/cointelegraph
Entrepreneurs want higher prices to compensate for longer periods of regulating, producing a 5% to 10% annual premium (rate rate) expected in neutral markets. When the rates fall under this range – as is the current 4.5% – this indicates a weak convincing.
Excessive optimization has a role in Ether Recent correctionSince $ 235 million in leveraged long position is liquid between March 10 and March 11.
Panic seller has pushed ETH to a low $ 1,744, its lowest level since October 2023. However, many indicators suggest a potential recovery, as ETH derivatives and onchain metrics show stability.
The Ethereum L2 network grows
Ether traded 60% below $ 4,868 all-time highs from November 2021. This decline is mainly due to increasing competition in the wise contract sector and demanded demand for applications such as unstable tokens (NFT), playingCollective, metaverse projects, social networks, and web3 infrastructure.
However, this perspective does not view a major factor. In late 2021, the average transaction fee exceeded $ 50, while the Ethereum’s Layer-2 Ecosystem activity was 97% less than it is today.
For the context, a token swap on the base layer of Ethereum costs $ 1.70 on March 11 despite the number of sun -average operations per second growing, featuring known network efficiency development.
Ethereum layer-2 daily average operation per second. Source: L2Beat
Although bots make up 80% of layer-2 transactions, the remaining 20% of the base, arbitrum, arbitrum, optimism, ZKSYNC activity, and blasts are almost three times higher than the base layer of Ethereum. However, critics have a valid argument: despite climbing network activity, validators earn a lot compared to late 2021.
Ethereum again gets dex top-spot, TVL grows
Ethereum has strengthened its position as a second-popular choice for institutional investors in traditional finances, supported by $ 8.9 billion in exchanges exchanged (ETF) funds.
Meanwhile, competitors like Solana Still awaiting regulatory approved For similar ETF products. Although they get approval, they cannot match the first-mover advantage of the Grayscale Ethereum Trust, which started public trading in the over-the-counter markets in June 2019.
Moreover, the Ethereum Smart contract deposits, measured by the total amount locked (TVL), have reached their highest level since July 2022 in the ETH terms on March 11, marked a 10% increase in the last two weeks.
Related: Strategic Crypto Reserve will fuel ecosystem growth
Ethereum Network TVL, Eth. Source: Defillma
At 24 million ETHs, Ethereum’s TVL is encouraged by the growth of liquid staking, lending, harvesting of farmingand tokenization of real-world assets. The network recently claimed its leading position in decentralized quantities of exchange, reaching $ 20.5 billion in seven days and exceeding Solana’s $ 13.9 billion, according to Defillrama data.
It provided a bullish outlook for the price of eth, driven by Layer-2 Transactions approaching all the time high, re-reclaiming the top area in Dex volume, and increasing TVL deposits.
Ultimately, the return of Ether’s trend remains highly dependent on macroeconomic improvements, but once stabilizing, the ETH is properly positioned to regain $ 2,500 as a major level of support in the coming weeks.
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.
