Highlights:
Institutional ETH accumulation remains robust as the Ether ETF and Bitmine Immersion lead a healthy spot-driven recovery.
Sluggish DApp revenues and negative ETH funding ratios suggest traders are skeptical of the rally.
Ethereum (ETH) price remained above $2,300 on Wednesday, moving away from the March 29 low of $1,940. The recent rally has seen ETH futures open interest reach $25.4 billion, indicating increased demand for leveraged positions. This move suggests that ETH bullish momentum is likely to change after 10 weeks of failed attempts to regain the $2,400 level.
To determine if the change in positioning is driven by bullishness, we need to evaluate the ETH futures funding ratio. The ETH perpetual futures funding ratio has not remained above 5% since Friday, indicating a lack of confidence among bulls.
The indicator has fallen below 0% several times, indicating excess demand for bearish leveraged positions. Under neutral conditions, the indicator should be between 5% and 10% to compensate for the cost of capital.
Nonetheless, it could be argued that these data support the point that Ethereum’s recent rise to $2,350 was sustained by spot demand.
The US-listed Ethereum spot exchange-traded fund (ETF) has accumulated net inflows of $248 million over the past 10 days, proving the thesis of healthy spot-led Ethereum bullish momentum. At the same time, digital asset treasury company Bitmine Immersion (BMNR US) announced the acquisition of $312 million worth of ETH. Bitmine currently holds 4.87 million ETH, equivalent to $11.46 billion.
While institutional accumulation is generally a positive sign, CoinGecko data shows that Bitmine’s ETH holdings are trading 13% below acquisition costs. Likewise, U.S.-listed Ether ETF assets under management stood at $13.7 billion on Wednesday, down from $20.5 billion three months ago. Ethereum’s failure to recover $2,400 also occurred as the S&P 500 index hit a new all-time high on Wednesday.
Weak Ethereum network activity, increased competition
Part of the decline in investor appetite for cryptocurrencies can be attributed to a decline in activity in decentralized applications (DApps). Almost every sector of the cryptocurrency industry has been negatively impacted by the 2026 bear market, including memecoin token launch platforms, synthetic derivatives trading, collateralized lending, digital collectibles, decentralized exchanges, and cross-chain bridges.
Several positive highlights, including prediction markets and real assets, had no impact on Ethereum network activity. Investors are beginning to question whether ETH is positioned to capture the final surge in demand for DApps, given the emergence of competing blockchains focused on solving specific problems, such as Hyperliquid and Plasma.
relevant: The ETH/BTC ratio hits a 10-week high as Ether outperforms Bitcoin. Will there be a new high price next?
Ethereum’s weekly DApp revenue plummeted from $24 million in early February to $11 million per week. The main reason for investors to accumulate ETH is the expectation of higher on-chain processing demand and the resulting burn mechanism, creating an incentive for long-term holding.
Despite increased demand for ETH futures, derivatives indicators failed to reverse their strength. Among the potential causes are the loss of Ethereum strategic reserve companies and increased competition in the DApp industry.
This article was written in accordance with Cointelegraph’s editorial policy and is for informational purposes only. It does not constitute investment advice or recommendations. All investments and transactions involve risk. Readers are encouraged to conduct independent research before making any decisions. Cointelegraph makes no warranties as to the accuracy or completeness of any information presented, including forward-looking statements, and will not be liable for any loss or damage arising from reliance on this content.