After a sharp price drop to $2,440, Ethereum (ETH) finds support at $2,400. Investors maintain interest in the cryptocurrency despite dissatisfaction with the current price.
Current State of the Ether Market
Ethereum failed to sustain the bullish momentum that peaked at $2,880. However, it showed stability around the $2,450 level. Currently, derivatives metrics indicate a growing sense of confidence among investors.
Growth of the Ethereum Layer-2 Ecosystem
The recent uptake in Ethereum layer-2 scaling solutions likely contributed to the early May rally. Combined activity on Base, Arbitrum, Unichain, and Polygon has surpassed $65.5 billion in decentralized exchange (DEX) trading volumes. Some Ether holders express dissatisfaction with the persistently low fees on Ethereum's base layer.
ETH Derivatives Markets Show Resilience
As of June 12, the total Ether balance on exchanges dropped to 16.31 million ETH, aligning with a 6% increase in Ethereum's total value locked to $67.2 billion. Many professional traders maintain an optimistic outlook despite the price drop.
The resilience at the $2,400 support level and the growth of the Layer-2 ecosystem foster positive sentiment among investors, while geopolitical factors may influence ETH's future price dynamics.
