March 6 - According to Cointelegraph, although Ethereum (ETH) has rebounded about 22% from its February 24 low, its upward space still faces dual constraints from the macro environment and derivatives market signals.
Data from the derivatives market shows that the annualized premium of ETH futures is significantly below the neutral level of 5%, indicating that leveraged long demand is still insufficient. Meanwhile, the options 25% skew indicator has risen to 7%, reflecting professional traders' increased need to hedge against downside risks, with the overall market sentiment remaining cautious.
On-chain data also presents signs of cooling. Weekly trading volume on the Ethereum network's DEX has declined from $22 billion a month ago to $12.6 billion, while DApp revenue has dropped by 47% week-on-week to around $1.41 million, indicating a significant short-term decline in on-chain activity.
However, in terms of core infrastructure indicators, Ethereum still maintains a dominant position. Data shows that the Ethereum ecosystem, including Layer2 networks, accounts for about 65% of the total value locked (TVL) in the entire blockchain market. Among them, the Ethereum mainnet TVL stands at approximately $55.4 billion, significantly higher than its main competitor Solana at around $6.8 billion.
Analysts believe that despite the cautious short-term trading sentiment, institutional funds are still more inclined to invest in the Ethereum network, which has a higher degree of decentralization and a more mature ecosystem.
