Brutal 20% Ethereum price sell-off is not finished, but is there a silver lining for ETH?

Ether (Eth) The price stabilized near $ 2,300 after a sharp 20% collapse for three days, beating a low $ 2,255. This refusal has avoided market emotion, as Ether has not been exchanged at these levels since October 2024. However, the Eth Derivatives market shows early signs of recovery and strength, suggesting a potential rebound at $ 2,800.

ETH’s 30-day futures are now trading in a 7% premium in the market area, a little from 6% two days ago. Premiums between 5% and 10% are considered neutral, as entrepreneurs usually expect a higher return for longer periods of regulating. This change indicates a weaker bearish pressure below $ 2,600, which can boost confidence in bullish investors.

Poor macroeconomic conditions prevent ETH price recovery

Traveling for ETH hits $ 2,800 again can take weeks or months, but data suggests the lowest price point is likely in the past. However, the speed of recovery depends on the investor’s caution, with recent figures on US unemployment and inflation that increases concerns.

The US claims unemployed for the week ending on February 22 reached a time -adjusted 242,000, the highest in three months. Also, US pending home sales in January fell to a low record, down 4.6% from last month, each National Association of Realtors. Economists reviewed by Reuters, as reported by Yahoo Finance, had predicted a smaller drop of 1.3%.

Investors are increasingly concerned about the new import tariffs announced by US President Donald Trump, who targets goods from China, Canada, and Mexico. Trump din threatening A 25% tariff on imports from the European Union, which motivates the EU to promise a firm and a quick response to unfair trade restrictions, according to the CNBC.

Nvidia shares fell 3.3% in February. Meanwhile, gold prices drop 2.2% to two days, slipping to a two-week low to $ 2,870, featuring greater market concerns affecting safe properties.

Ether market options show stability in spite of price crashing

Currently, ETH options are at -2%, which sit comfortably within the neutral range of -6%to 6%. This suggests being stable in whales and market makers, especially noticeable because ETH prices have dropped by 20%. Despite the collapse, there is no significant rush to buy Put Options, which indicates market confidence.

The current market conditions resemble Feb. 3, when the ETH price drops 38% under three days, falling from $ 3,437 to $ 2,124. Back then, the Eth Delta skew metric remained close to zero, reflecting solid confidence in the market. Ether quickly recovered at $ 2,750 over a day and held a $ 2,550 support level for the following two weeks.

Related: NVIDIA Revenues up 80% from ‘amazing -wonderfully’ demand for AI chips

Ether’s path to $ 2,800 remains to be achieved as its main competitor, Solana, the faces that lower the momentum in Memecoin sector. Ethereum, meanwhile, maintains its dominance over the total amount locked (TVL), driven by strong demand for liquid staking, lending, aggregators, and automatic onchain liquidity protocols.

ETH price recovery speed mainly depends on the Ethereum that delivers it planned upgrades and care of incentives for projects to come up with their own layer-2 solutions. This in turn, improves the base layer utility and strengthens the staking rewards, creating a clear path for ETH price recovery.

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.