ETH fell 13% between March 8 and March 11. As investors moved to short -term fixed income and cash positions, they pursued safety in the global tariff war and the fear of economic downturn increased.
ETH prices require 29% profit to reclaim $ 2.5K.
The market problem has been expanded after the US responds to Canada’s electricity premium due to retaliation.
S & P 500 The Future (left, Magenta) Dae ether/USD (blue). Source: TradingView/COINTELEGRAPH
In general, traders tend to be over -reaction, and if market feelings improve, ethers are likely to rebound faster than other assets. Some argue that risky assets are led by inflation and economic growth data, but others believe that profits depend on stimulating measurement and financial expansion.
Regardless of the catalyst for the next bull run, the price of ethers must be 29%at $ 1,940 to find $ 2,500. This movement will need to increase the demand for buyers with the lowest activity in five months.
ETH 2 -month gift annual premium. Source: laevitas.ch/COINTELEGRAPH
Traders want higher prices to compensate for the settlement period and expect an annual premium of 5% to 10% in the neutral market. If the rate is lower than this range (the same as 4.5%), it will signal a weak optimistic conviction.
Excessive optimism played a role in Ether’s recent correction, as $ 225 million in the leverage long -distance position was cleared between March 10 and March 11.
Panic sales have led ETH to $ 1,744 at the lowest level since October 2023. However, some indicators suggest potential recovery because ETH derivatives and onchain indicators show elasticity.
Ether Lee L2 Network grows
Ether has been trading 60%less than $ 4,868 since November 2021, which is due to the increase in competition in the smart contract sector and the high demand for applications such as NIVENBIAL TOKENS (NIVENBIAL TOKENS), games, collections, social networks and web3 infrastructure.
But this perspective overlooks the core elements. In the late 2021, the average transaction fee exceeded $ 50, and the activities of Ether Leeum Layer -2 ecosystem were 97% lower than today.
In the case of contexts, the token exchange for Ether Lee’s basic layer costs $ 1.70 on March 11 despite March 11th.
Ether Leeum Layer -Average daily work per second. Source: L2Beat
Even if the bot generates 80%of the layer -2 transaction, the remaining 20%in the basic, intervention, optimism, zksync and BLAST is about three times higher than the basic layer of Ethereum. But critics have a valid claim. Despite the surge in network activities, the validity test is much less profitable than in late 2021.
Ether Lee Rium regains DEX TOP-SPOT and tvL grows
Ether Lee has strengthened its popularity as the second most popular options for traditional financial institutions, with $ 8.9 billion in SPOT Exchange-Traded Funds (ETF).
Meanwhile, competitors like Solana are still waiting for regulation approval for similar ETF products. Even if you are approved, it will not match the first advantage of the GrayScale Ethereum Trust, which began public trade in a market that can be purchased without prescription in June 2019.
In addition, Etherrium Smart Contract deposits, measured by TVL (Total Value Locked), have reached the highest level since July 2022 during the ETH period on March 11, increasing 10% over the last two weeks.
relevant: Strategic password protection zones will cause ecosystem growth.
Ether Leeum Network tvL, ETH. Source: Defillama
In 24 million ETH, Ether Lee’s tvL was led by the growth of liquid staying, loan, yield agriculture and actual asset tokenization. According to Defillama Data, the network has recently regained its leading position in the distributed exchange, reaching $ 20.5 billion in seven days and exceeding Solana’s $ 13.9 billion.
This provided an optimistic outlook for the price of ETH, recovering the highest point of -2 trading, DEX volume, which is close to the highest level, and increased TVL deposits.
Ultimately, Ether’s trend reversal relies heavily on macroeconomic improvements, but once it is stabilized, ETH is well deployed to recover $ 2,500 in the next few weeks.
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.