Ethereum Price falls to a minimum of 2 years, but professional merchants still have hope

The price of Ether (eth) fell to $ 1,410 on April 7, marking its lowest level since March 2023. This strong decrease triggered liquidations of eth future stretchs worth more than $ 370 million in 2 days, according to Coinglase data. However, Altcoin managed to recover above the $ 1,500 brand, since the S&P 500 index recovered its 5,000 psychological support level.

In the last 30 days, Ether has had a lower performance to the wider cryptocurrency market by 14%. In spite of this, professional merchants are not yet ready to become bassists, as suggested by the ethereum derivatives data and the chain metrics. Although these data do not guarantee that Ether's price has reached its butt, the reduced demand for bassist positions below $ 1,600 offers some peace of mind for upward investors.

On April 7, Ether's monthly futures premium increased to 4% after immersing itself at 3% earlier in the day. Although it is still below the 5%neutral threshold, this marks an improvement since March 31, when the indicator reached a minimum of 2%. Currently, there is a remarkable lack of demand for long positions (buyers), but this is not unusual after a strong 30% drop in the price of eth during the past month.

Ether is a victim of worsening macroeconomic conditions

Investors are still concerned that increasing global commercial tensions can lead to an economic recession and reduce interest in risk assets. This scenario also weakens the potential positive impact of a possible interest rate cut during the next meeting of the United States Federal Reserve (FED) from May 6 to 7. In general, such movement would benefit the cryptocurrency market by reducing yields of fixed income investments.

Despite the strong impulse of the president of the United States, Donald Trump for the cuts of interest rates, as expressed in his social position of truth on April 7, the president of the Fed, Jerome Powell, remains cautious on inflation trends. According to reports, Powell declared on April 4: “It is too early to say what will be the appropriate path for monetary policy,” according to Yahoo Finance.

Adding more pressure to the price of Ether was the decision of ethereum developers to delay the tong update, originally scheduled for April. The developers have now established on May 7 as the destination date for its launch of Mainnet, but did not provide a specific reason for delay. This comes in spite that the Hoodi Testnet update was successfully implemented on March 26.

Ether derivatives show moderate resilience while ethereum TVL jumps to a maximum of all time

Given the flow of negative news, one could have expected Ether Bears to completely dominate the market. However, derivative data suggests that bears do not have as much confidence as they anticipate. When merchants prevent a correction, the options to put (sell) tend to trade with a premium, which pushes the 25% delta bias metric above 6%. On the contrary, during the upward periods, this indicator generally falls below -6%.

Currently, eth options bias is 10%, the same level as March 31, which remains within the bearish territory. However, this reading is significantly less extreme compared to May 2024, when it reached its maximum point at 20% in the middle of a strong eth price drop from $ 3,700 to $ 2,860 in five weeks. In essence, while ether derivative markets indicate a bearish feeling, they do not reflect panic levels.

Ochain data for ethereum shows resilience despite the widest challenges of the market. The total blocked value (TVL) in the ethereum network reached a historical maximum of 30.2 million eth on April 6, an 22% increase compared to the previous month. This growth exceeded the 12% Solana increase in the Sun (Sun) terms and the 16% TVL increase in the BNB chain during the same period.

Ultimately, macroeconomic conditions remain the main driver of cryptocurrency demand. However, by analyzing Ether derivatives data and ethereum's TVL performance, it seems that eth price disadvantage can be limited.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The points of view, the thoughts and opinions expressed here are alone of the author and do not necessarily reflect or represent the opinions and opinions of Cointelegraph.