According to CoingLass data, ETH prices fell to $ 1,410 on April 7, the lowest level since March 2023, which caused the liquidation of more than $ 37 million for more than $ 37 million in two days. However, Altcoin scored more than $ 1,500 when the S & P 500 regained 5,000 psychological levels.
Ether/USD (blue) total encryption market cap (Magenta). Source: TradingView / COINTELEGRAPH
Over the last 30 days, Ether has been less than 14%of the broader cryptocurrency market. Nevertheless, professional traders are not yet ready to turn weak, as suggested by Ether Lee’s derivatives data and onChain indicators. This data does not guarantee that the price of ether has reached the bottom, but the decrease in demand for weak positions of less than $ 1,600 provides some guarantees for optimistic investors.
Etter 2 months gift annual premium. Source: LAevitas.ch
On April 7, the ether monthly futures premium dropped to 3%earlier, up to 4%. It is still less than 5%of neutral thresholds, but this has been improved from March 31, when the indicators are low. At present, the demand for long positions (buyers) is noticeably lacking, but it is not uncommon after the price of ETH decreased by 30% over the last month.
Ether is a victim of deterioration of macroeconomic conditions.
Investors are concerned that if global trade tension increases, it can lead to economic recession and reduce interest in risky assets. This scenario also weakens the potential positive effects of reducing interest rate cuts during the Federal Reserve (FED) from May 6 to 7. In general, these movements will benefit the cryptocurrency market by lowering profits for fixed imports.
Despite the strong promotion of interest rates, as the US President Donald Trump expressed in his truth social post on April 7, Jerome Powell, the Fed Chairman, is still cautious about inflation trends. POWELL said on April 4, “It is too early to say what is the right way for monetary policy.”
The pressure to the Ether was the decision to delay the PECTRA upgrade, originally scheduled for April. The developer has now set May 7 as the target date of the Mainnet release, but no specific reason for the delay has not been provided. This occurs, but the HOODI TESTNET upgrade was successfully implemented on March 26.
Ethereum tvL shows appropriate elasticity while the Ethereum tvL jumps to a record high.
Given the negative news flow, the ether bear may have been expected to completely dominate the market. But derivatives data suggest that bears are not as confident as expected. If a trader predicts modifications, the PUT (SELL) option tends to be traded as a premium and pushes 25% DELTA SKEW Metric to 6% or more. On the contrary, during the strong period, this indicator is usually less than -6%.
The 30-day option in the ether deribit. Source: LAevitas.ch
Currently, ETH OPTIONS SKEW is 10%at the same level as March 31, which remains in the weak territory. However, this reading value is much less extreme compared to May 2024, peaking from $ 3,700 to $ 2,860 within five weeks. In essence, the ether derivative market signals weak feelings, but does not reflect panic levels.
Ether Lee’s onchain data shows elasticity despite wider market problems. The total value lock (tvL) of Ether Leeum Network reached up to 13.2 million et on April 6. This growth surpassed SOL (SOL) terms by 12% and increased 16% tvL of BNB chains during the same period.
Ultimately, macroeconomic conditions remain the main drivers of cryptocurrency demand. However, the price drop of ETH may be limited when analyzing Ether derivatives data and TVL performance of Ethereum.
This article is for general information purposes and should not be considered legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.