The price of ether (ETH) dropped by 9.3% between March 26 and March 28, testing the level 1,860 USD for the first time in two weeks. This correction has led to over $ 114 million in liquidation of future ETH time -term contracts and caused that the bonus in relation to the regular spot market has dropped to the lowest level for over a year.

Some traders said that the Futures of DNA Rock is the lower signal, but let’s get deeper into the data to see if this perspective has any sense.

Monthly Futures Ether contracts usually trade above the regular spot price, because sellers require compensation for a longer accounting period. Annual bonus from 5% to 10% usually indicates neutral markets, reflecting the cost of possibilities and the risk of exchange. However, Futures ETH has fallen below this threshold on March 8, after 24% price correction in the last two weeks.

The current 2% ETH Futures Futures Premium suggests a lack of demand for lever debts (Buis), but the last price movements have a great impact on this measure. For example, on October 10, 2024, the ETH Futures bonus dropped to 2.6% after 14% price correction in two weeks, but the indicator increased to 7% because ETH regained most of its losses. Basically, Futures bonus rarely signals changes in price trends.

ETH whales are afraid that the ether price will fall on

To determine if whales have lost interest in ether, it is essential to observe how the market is valuation options (sale) compared to connection options (buy). When traders predict a inheritance, 25% of the Delta sketch record increases above 6%, which indicates a higher demand for security strategies. On the other hand, periods of stubbornness usually push below -6%.

Currently, at 7%, 25% of the ETH option suggests a lack of conviction among professional traders, increasing the likelihood of further rush.

From the point of view of the derivative instrument market, there are no tips that the last correction of ETH prices has increased. Basically, investors are not convinced that maintaining support of USD 1,800.

Some analysts say that a edged decrease in the activity of the Ethereum network is the main reason for the reduced appeal of ETH, while others suggest that the shift towards scalability of layer 2 significantly reduced the potential of chain fees. Given the need to compensate for network validators, the lack of an influx of capital requires more ETH emission, which negatively affects the net returns from the native pond.

The Ethereum network is in the face of steep competition

The attempt to indicate the reasons for the motivation of sellers is in vain, especially when considering the eTHEREUM competition, which has expanded from blocks such as BNB Chain and Solana to networks adapted to specific challenges. The examples include hyperlic, focused on synthetic assets and continuous trade, as well as Berachain, which is apparently better suitable for the resources in the pools of the cross.

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The success of some decentralized applications (DAPP) can serve as the final blow to the ether. For example, Etena, a synthetic dollar protocol on Ethereum, goes to its own blockchain layer 1. The project, which currently has $ 5.3 billion in the total value of blocked value (TVL), collected $ 100 million in December 2024 to support this change.

However, it may be premature to say that the ETH price will continue to drop because the main update of the protocol lasts only a few weeks. Investors should carefully track the practical benefits of updating Pectra Ethereum, especially in terms of the fees of the basic and general usability for the average user. Until then, the chances that ETH will exceed the wider Altcoin market remain petite.

This article is used for general information purposes and should not be and should not be treated as legal or investment advice. The views, thoughts and opinions expressed here are themselves and do not necessarily reflect or represent the views and opinions of Cointelegraph.