- Ether’s price fell 6% from $2,200 on Wednesday, caught in a risk-off shift due to Middle East conflict and US legal rulings.
- Derivatives markets show a pessimistic outlook, with futures below the neutral 5% premium and options skew rising to 7% as traders hedge.
- Despite a 50% drop in weekly DEX volumes and DApp revenues, institutional preference keeps Ethereum‘s ecosystem dominant with nearly 65% of total market TVL.
Ether (ETH) price dropped by 6% following a brief rally to $2,200 on Wednesday, tracking a downturn in US equities as the war in Iran entered its sixth day. Investors lowered their economic growth outlook as the conflict escalated, moving to a risk-off posture that stifled crypto momentum.
Traders’ sentiment was further pressured as the Trump administration faced a legal setback on its import tariffs. Consequently, Ether remains caught in this macroeconomic crossfire, which has stifled momentum despite a 22% recovery from late February.
The ETH 30-day futures annualized premium sits well below the 5% neutral threshold, signaling a lack of demand for bullish leverage. However, the ETH options skew reached 7% on Thursday, indicating persistent skepticism among professional traders seeking protection.
Weekly DEX volumes on the Ethereum network recently hit $12.6 billion, falling sharply from $20.2 billion one month prior. Decentralized application revenues similarly dropped to $14.1 million over seven days, marking a 47% decline.
Despite weak onchain metrics, ETH is well-positioned to capture an eventual pickup in DApp activity due to its dominance in total value locked (TVL). The Ethereum ecosystem accounts for nearly 65% of the total blockchain market TVL, according to data.
The current weakness in Ether derivatives does not necessarily signal an imminent price crash. Market sentiment can shift quickly toward sustained bullish momentum if ETH reclaims the $2,400 level, though it remains tied to broader risk-off sentiment.
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