Key points:
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Despite the price drop by 15% and the liquidation fare is $277 million, ETH still holds $2,400 in support.
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Growth of the Layer 2 network and inflow of on-site ETH ETFs maintain investor confidence in ether.
Ether (Ethereth) failed to maintain the bullish momentum that peaked on Wednesday, although it also showed elasticity close to the $2,450 level. While investors are not particularly excited about the current price, derivatives indicators show that people are increasingly confident.
Ether Futures Premium briefly turned bearish on Friday as Eth Price fell 15% to $2,440, eliminating $277 million in leverage in two days. However, by Sunday, futures premiums had recovered the neutral 5% threshold, suggesting traders are regaining confidence in the $2,400 support level.
Ethereum Layer 2 ecosystem surges
The latest surge in Ethereum layer 2 scaling solutions may have led to Ether rally in early May. This is with Solana and BNB Chain surpassing Ethereum in Decentralized Transaction (DEX) transaction volume. The merger activity of foundations, arbitration, Unichain and polygons exceeded Ethereum’s monthly DEX volume of $65.5 billion.
Many Ethereum holders are frustrated by the ongoing low fees at the Ethereum base layer, a key factor in the growth of ETH supply. On the other hand, the summary enables scalable solutions, opening up new possibilities. For example, Base’s largest decentralized application Morpho supports custom infrastructure for use cases Mortgage loan and yield.
On June 12, Shopify launches limited USDC Stable payment exist Basic blockchain. The product includes a 1% cashback incentive and is expected to be fully launched by the end of 2025. The collaboration with Coinbase emphasizes the low cost and security of the layer 2 blockchain foundation.
The Ether derivatives market shows elasticity in ETH price weakness
The ETH options market fell below $2,500 on Tuesday, providing further insight into the sentiment of professional traders. In a neutral environment, 25% of the delta skew usually fluctuates between negative 5% and +5%, reflecting the balanced pricing between PUT (sell) and call (buy) options.
Currently, ETH PUT options trade at a 4% discount compared to the same call option, which keeps them within the neutral range. This shows that although ETH failed to maintain the $2500 level, the whale and Market Maker Didn’t turn into bearish. Part of the optimism may stem from $830 million Net inflow To obtain spot exchange-traded funds (ETFs) listed on Ethereum.
The lower ETH balance of the exchange is usually considered bullish because deposits mean ready for sale, while withdrawals usually mean bet Or hold it for a long time to relieve immediate supply pressure.
As of June 17, the exchange’s total ether balance fell to 16.31 million ETH, down from 16.71 million a month ago. This coincides with Ethereum’s Total Value Lock (TVL), which rose 6% to $67.2 billion in the same period, according to Defilama.
Related: In the Israel-Iran conflict
Ultimately, the trajectory of the Ethereum is increasingly affected by geopolitical tensions in the Middle East and the ongoing trade disputes between the United States and its major economic partners.
While traders do not expect ETH to revisit $3,000 in the near term, Derivatives Market It indicates that the support level of $2,400 may continue to be held.
This article is for general information purposes and is not intended to be considered legal or investment advice. The views, thoughts and opinions expressed here are the authors alone and do not necessarily reflect or represent Cointelegraph’s views and opinions.
