Despite a sharp rise in ETH prices, traders remain skeptical about the future value of Ethereum's business. Analysis shows that financial metrics cast a shadow on further high prices.
Uncertainty in ETH Financial Markets
Ether (ETH) price surged 13.5% over two days, reaching $2,925; however, traders are still hesitant about the potential to break above $3,000. ETH derivatives markets indicate a lack of confidence, raising doubts among traders about further successes.
The ETH monthly futures premium sits at 5%, remaining on the edge between neutral and bearish.
Network Fees and Their Impact
ETH is still down 41% from its all-time high in November 2021, which partially explains the traders’ cautious outlook. Ethereum network fees have declined, which reduced the burn rate of ETH. Over the past 30 days, fees dropped by 22% to $34.8 million. Despite a rise in the total value locked (TVL), this has not translated into increased confidence in ETH.
Comparison with Other Blockchains
These metrics place Ethereum in comparison with other blockchains like Solana and Tron. Ethereum's TVL stands at $73 billion, but its network fees significantly lag behind Tron, whose fee volume is 60% higher. While growth in the layer-2 ecosystem was unexpected, lower fees have not boosted ETH demand.
In the near term, uncertainty in the ETH market and low fees may hinder further price growth. Despite recent successes, traders are currently unconvinced about the sustainability of the trend.
