Recent market analysis of Ethereum shows that despite recent price drops, futures and network activity remain stable. Market conditions are concerning for investors, yet some indicators suggest a recovery potential.
State of Ethereum Futures
Ethereum ([ETH](https://cointelegraph.com/ethereum-price "https://cointelegraph.com/ethereum-price")) has found support around $4,070 after a sharp 15.1% drop over six days. This movement erased $817 million in bullish positions but did not trigger a complete bearish sentiment. Instead, ETH derivatives indicate that traders remain unfazed and still hope for a recovery towards $4,700.
Investor Uncertainty Amid Economic Volatility
Part of the traders' caution stems from macroeconomic uncertainty. US inflation remains above the Federal Reserve's 2% target, and economic growth shows mixed signals. The Nasdaq Composite is down again amid fears that AI stocks may be overvalued. Additionally, recent reports revealed weaker earnings from Target, highlighting market strain.
Ethereum Onchain Activity and Growth Expectations
Onchain activity presents a more positive scenario: Ethereum maintains roughly 60% of the market share in total value locked (TVL), per DefiLlama. Network fees are also rising, reflecting stronger demand for blockspace, which supports Ether's price recovery. Over the past week, Ethereum's fees increased to $11.2 million, marking a 38% rise compared to the previous week.
Despite traders' cautious approach amid overall market correction, derivatives data indicate that professional traders remain composed. Achieving a recovery to $4,700 for Ethereum largely depends on improved economic conditions and reduced investor fears.
