ETH Rally to $3.2K Unlikely Based On Data
Ether (ETH) increased by 9% from Tuesday to Thursday but did not surpass the $2,600 level. A bullish "golden cross" technical formation suggests potential for a rise to $3,200, last seen in January. However, derivatives data indicates low trader confidence, with no significant demand for leveraged long positions despite the price increase. The Ether futures premium remains below the 5% neutral threshold, signaling a lack of bullish sentiment. Decentralized applications (DApps) on Solana outperformed those on Ethereum, generating $1.3 billion more in revenue. Ethereum's layer-2 scaling strategy is not translating into increased demand for ETH. Interoperability issues within the layer-2 ecosystem hinder collaboration among projects. The ETH options delta skew is at 1%, indicating equal likelihood of price movement in either direction. The recent launch of a Solana ETF has further diminished ETH's dominance among altcoins, complicating prospects for a sustained rally without direct benefits for ETH holders.
