The Ether (ETH) market shows mixed signals despite a recent price rise. Derivatives data indicates a neutral-bullish stance among traders, but clear catalysts for sustained growth remain unclear.
Current Price Dynamics of Ether
Ether has risen by 9% from a low of $3,355 on Sunday, yet derivatives metrics suggest low trader confidence in continuing bullish momentum.
The recent price action has closely mirrored the broader altcoin market capitalization, highlighting the absence of clear drivers for sustained rallies above $3,800.
Decline in TVL on Ethereum Platform
The decrease in deposits across decentralized applications (DApps) also significantly contributes to investors' disappointment. The total value locked (TVL) on the Ethereum network declined by 9% over the past month to ETH 23.8 million.
In contrast, BNB Chain’s TVL rose by 8% in the same period, while deposits on Solana DApps increased by 4%, according to DefiLlama. In USD terms, Ethereum continues to dominate with 59% share of total TVL.
Lack of Institutional Demand
Currently, ETH prices on Coinbase and Kraken are trading at a slight discount compared to Binance and Bitfinex, potentially signaling weaker demand from institutional investors. Demand for ETH from institutional desks appears to have notably declined, especially as Ether spot exchange-traded funds (ETFs) recorded $129 million in net outflows between Wednesday and Friday.
Overall, without renewed institutional inflows, ETH is likely to continue moving closely with the overall altcoin market. The absence of catalysts and ongoing risks in the global economy also create uncertainty for short-term growth.
