The main dishes to remember:
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Ether is struggling to take up bullish momentum despite the gains of S&P 500 and locate ETF entrances.
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The institutional accumulation continues, but the activity of the network decreases, leaving $ 5,000 the objective of an uncertain Eth.
ETHER (ETH) was negotiated in a close range of $ 4,200 to $ 4,500 in the past two weeks, a period of consolidation after its brief meeting with the $ 4956 of all time on August 24. Ether traders now assess the probability of the lower content of American work.
Ether term contracts are currently negotiated at a premium of 5% compared to the standard STH markets, reflecting the low demand from buyers using the lever effect. Under neutral market conditions, term premiums are generally between 5% and 10% to reflect the longer payment period. More unfortunately, even the rally greater than $ 4,800 in August failed to instill a bullish feeling among merchants.
The downward trend of ether derivatives coincided with 10 consecutive days of net outputs of the funds (ETF) on the Ethereum exchange (ETF) which lasted until Monday. The trend reversal, followed by $ 216 million at net entrances, ETF on Tuesday and Wednesday, did not do much to generate a sustainable bullish momentum, leaving traders wondering if a price of $ 5,000 from the ETH remains realistic for 2025.
Part of the disappointment of ether investors can be awarded to the drop in Ethereum network fees, although this problem has affected the entire cryptocurrency market.
Ethereum chain fees totaled $ 42 million over 30 days, down 7% compared to the previous month. In comparison, the fees on a tron dropped by 12% and Solana experienced a 2% drop. The number of addresses active on the base layer of Ethereum has remained flat, while layer 2 solutions such as the base, the arbitrum and the polygon have seen significant reductions.
In relation: The ETH Spot ETH are bleeding $ 1 billion in a 6 -day exit sequence as price optimism fades
The institutions continue to buy ether despite the drop in onchain’s activity
Despite a lower onchain activity, institutional investors continue to add positions aimed at long -term reserves. Bitmin Immersion Tech (BMNR) added 202,500 ETH to its balance sheets in the last seven days, according to strategic ETH reserve data, valued at more than $ 880 million. The investment vehicle listed in the United States now contains more than $ 9.1 billion in ether.
Recent gains in the S&P 500 index do not necessarily indicate positive expectations for the broader economy. Traders have become more confident than the American federal reserve will be forced to reduce interest rates after initial complaints of unemployment benefits have reached their highest level since October 2021.
The stock market behaves more and more as gold than a traditional risk asset, offering dividends and redemptions based on income, while cryptocurrencies such as ether remain more risky in the middle of the fear of economic slowdown. Therefore, the path to an ether price of $ 5,000 largely depends on lower macroeconomic uncertainty.
This article is for general information purposes and is not intended to be and must not be considered as legal or investment advice. The points of view, the thoughts and opinions expressed here are the only of the author and do not reflect or do not necessarily represent the opinions and opinions of Cointellegraph.