ETH Whales Abstain As Data Shows Reduced Odds For $4K Rally
The post ETH Whales Abstain As Data Shows Reduced Odds For $4K Rally appeared on BitcoinEthereumNews.com.
Key takeaways: ETH derivatives exhibit a fading bullish appetite as Ethereum’s TVL declines and network fees decrease, reinforcing persistent risk aversion. US job layoffs climb, and seasonal hiring weakens, leaving traders waiting for fresh liquidity before rebuilding confidence in ETH’s near-term upside. Ether (ETH) has climbed 15% from its $2,623 low on Friday, yet derivatives metrics show traders remain cautious. The absence of bullish leverage from top ETH traders, combined with falling Ethereum network fees, weakens the case for sustained upside. As a result, traders question what must shift for ETH to convincingly reclaim the $4,000 mark. ETH perpetual futures annualized funding rate. Source: laevitas.ch Demand for leveraged bullish ETH positions has been virtually absent since Monday, as indicated by the perpetual futures funding rate. Under normal conditions, this rate should sit between 6% and 12% to offset capital costs. Still, a meaningful portion of the current hesitation stems from uncertainty following the October flash crash. The 20% Ether price plunge on Oct. 10 sparked widespread liquidations across centralized and decentralized venues, dealing a major blow to trader confidence. total value locked (TVL) on the Ethereum network slid to $72.3 billion from $99.8 billion on Oct. 9, according to DefiLlama data. This contraction in deposits adds pressure to ETH’s price outlook, as investors brace for softer demand. Blockchains ranked by seven-day network fees, USD. Source: Nansen Ethereum network fees dropped 13% over the past week, even though transaction counts held steady. That divergence has investors worried about a negative feedback loop tied to shrinking network deposits, which could ultimately produce an inflationary tilt for ETH. After all, Ethereum’s burn mechanism relies entirely on sustained onchain activity. ETH top traders’ long-to-short ratio at OKX. Source: CoinGlass When aggregating spot, futures and margin positions, top traders at OKX have trimmed their bullish…
