Ether Price Approaches $3,000 Amid Cautious Market Sentiment
Ether (ETH) is nearing the $3,000 resistance level, a key threshold watched closely by cryptocurrency enthusiasts. However, data from futures and options markets indicates professional traders remain cautious, raising questions about the rally’s sustainability.
Market Signals Show Hesitation
ETH surged 13.5% over two days to reach $2,925, yet derivatives markets reveal limited confidence. The Ether monthly futures premium currently stands at 5%, hovering between neutral and bearish territory. While improved from last week’s 3.5%, this metric doesn’t yet signal strong bullish momentum.
Layer-2 Growth Fails to Boost ETH Demand
While Ethereum‘s layer-2 solutions have expanded significantly, reducing network congestion and fees, this hasn’t translated to increased ETH demand. Nansen data shows Ethereum network fees dropped 22% to $34.8 million over 30 days. Lower fees mean less ETH is burned, potentially increasing supply and creating downward price pressure.
Institutional Support Provides Temporary Boost
Recent price gains correlate with $468 million flowing into US-listed exchange-traded funds (ETFs) over four days. Treasury purchases by ShapLink Gaming (SBET) and Bit Digital (BTBT) also supported prices. However, it’s unclear whether institutional interest will sustain current levels given market volatility.
