Investors are eyeing a rise in Ethereum’s price to $3,200, driven by a ‘golden cross’ chart pattern. Despite this optimistic technical analysis, not all indicators align.
Highlights:
- Ethereum struggles to recover $2,600 as futures data reflects traders’ weak sentiment.
- Layer-2 expansion hasn’t boosted ETH demand, mainly due to minimal rollup transaction fees.
- Competition from Solana’s ETF challenges ETH’s altcoin dominance.
The coin spiked by 9% earlier in the week but hit resistance at $2,600. Analysts suggest the ‘golden cross’ could push it to $3,200, a peak not seen since January. However, derivative statistics hint at a cautious market sentiment.
Twitter user MerlijnTrader mentions that the cross indicates potential bull markets, with ETH showing enhanced momentum compared to its long-term trends.
Weaker Derivative Signals Amid Rising Competition
Despite ETH climbing to $2,600, the setup didn’t increase demand for long positions. Normally, futures have a 5-10% premium, mirroring the settlement extension.
The futures premium still lags behind the 5% baseline despite recent gains. This misalignment correlates with the inauguration of Solana’s Official Trump memecoin, which spiked blockchain volumes.
Observer cryptunez notes that Solana’s apps outpace Ethereum’s revenue by $1.3 billion.
Yet, this view excludes Ethereum’s strategic layer-2 focus. Much revenue now feeds Base, Arbitrum, Polygon, and others. Solana, meanwhile, faces MEV criticisms, letting validators rearrange transactions profitably.
R89Capital echoes similar sentiment, highlighting a missed bullish opportunity for ETH despite companies building on its layer-2 system. Low rollup fees boost adoption without driving significant ETH demand.
Viktor Bunin from Coinbase sees interoperability within Ethereum’s layer-2 as a hurdle, with teams unable to unite under one framework. Increased Ethereum Foundation engagement is needed for advancement.
Assessing ETH’s price outlook? Examine the options delta skew—puts trade at premiums in bearish times, pushing the 6% benchmark.
Current skew at 1% indicates balanced expectations for upward or downward shifts, remaining static from last week.
Related: ETH news update: Could rising corporate treasuries boost Ether’s price to $2.8K?
Ether’s derivative skepticism reinforces doubts about reaching $3,200. Part of this hesitance arises from Solana launching the first U.S. ETF.
With its embedded staking, Solana’s ETF not only undermines ETH’s altcoin leader status but raises competition levels. For ETH holders to see benefits, Ethereum must better its tokenization and institutional integration.
This piece provides general information, not legal or investment advice. Opinions expressed herein are exclusive to the author and don’t necessarily reflect Coinstelegram’s perspective.
