Despite ETH’s impressive 56.5% price increase recently, traders exhibit caution as indicated by Ethereum derivatives data. Market skepticism persists regarding a potential rally to the psychological threshold of 4,000 USD, reflecting deep-seated concerns about ongoing network challenges.
On-chain activity has noticeably decreased, contributing to an 11% drop in TVL, now standing at 23.4 million ETH. This decline indicates a declining confidence in Ethereum compared to competitors like Solana and BNB Chain, further impacting market dynamics.
The accumulation of Ether by corporate reserves is raising questions about market sentiment. If this trend continues, there may be significant implications for ETH’s price trajectory, intensifying speculation on reaching 5,000 USD.
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