Ether (Eth) The price dropped to $ 1,410 on April 7, marked at the lowest level since March 2023. This sharp denial has been averaging leveraged et futures worth more than $ 370 million in 2 days, according to coinglass data. However, Altcoin has managed to recover above the $ 1,500 mark as the S&P 500 index to reclaim the psychological support level of 5,000.
Ether/USD (blue) compared to total crypto market capitalization (magenta). Source: TradingView / Cointelegraph
Over the past 30 days, Ether’s underperform is the broader cryptocurrency market of 14%. Despite this, professional traders are not yet ready to be bearish, as proposed by Ethereum’s Data of derivatives and onchain metrics. While this data does not guarantee that the price of Ether has reached under it, the reduced demand for bearish positions below $ 1,600 offers some certainty for bullish investors.
Ether 2-month futures annual premium. Source: Laevitas.CH
On April 7, the Ether Monthly Futures Premium rose to 4% after sinking to 3% earlier in the day. Although still under the neutral threshold of 5%, it marked an improvement from March 31, when the indicator struck low 2%. Currently, there is a noticeable lack of demand from long positions (consumers), but this is not uncommon following a steep 30% drop in ETH prices in the last month.
Ether is the victim of worsening macroeconomic conditions
Investors remain concerned that increasing stress in global trade can lead to an economic contraction and reduce interest in risk assets. This situation also weakens the potential positive effect of a possible Cut off interest rate At the next US Federal Reserve (FED) meeting on May 6-7. Usually, such a move will benefit the cryptocurrency market by lowering the returns to fixed income revenues.
Despite the strong push of US president Donald Trump for reductions in interest rate, as revealed in his society’s reality on April 7, Fed Chair Jerome Powell remains Be careful about inflation trends. Powell reported on April 4: “It is also close to telling what would be the appropriate path for financial policy,” according to Yahoo Finance.
Adding additional pressure to ether price is the decision of the Ethereum developers to delay the PECTRA UPGRADEOriginally scheduled for April. The developers have now set up May 7 as the target date for the Mainnet launch but have not provided a specific reason for the delay. This came even though the hoodi testnet upgrading was successfully implemented on March 26th.
Ether Derivatives show moderate stability as Ethereum TVL jumps in a high time
Due to the negative news flow, one may expect that ether bears will completely dominate the market. However, derivatives data suggest that bears are not as confident as expected. When traders are raising a correction, place (sell) the options tend to trade in a premium, pushing the 25% delta skew metric above 6%. Conversely, in bullish periods, this indicator usually drops below -6%.
Ether 30-day skew options (put-call) in the derivit. Source: Laevitas.CH
Currently, the ETH Options Skew stands at 10%, the same level of March 31, which remains within the bearish territory. However, this reading is significantly less intense compared to May 2024, when it sank to 20% in the middle of a sharp ETH price drop from $ 3,700 to $ 2,860 in five weeks. In essence, while the Ether derivatives market signal bearish sentiment, they do not reflect panic levels.
Onchain data for Ethereum shows stability despite the broader challenges in the market. The total amount locked (TVL) in the Ethereum network reached a full time 30.2 million ETH in April 6-a 22% increase compared to last month. This growth exceeds Solana’s 12% increase in Sol (Sol) The 16% TVL of the BNB chain increased at the same time.
Ultimately, macroeconomic conditions remain the main driver of cryptocurrency demand. However, when reviewing Ether Derivatives and Ethereum’s TVL’s performance data, it appears that the price of ETH may be limited.
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.
