The price of Ether (ETH) has been unable to surpass $2,350 for the past 15 days, but some traders are optimistic that the rally on February 6 could lead to a more significant change in the trend.
Traders are closely watching the impact of Solana’s network outage and the substantial outflow of Ether from exchanges last week on the price. They are also questioning whether Ether can rally another 10% to reach the $2,650 level last seen on January 12.
Ethereum continues to be the leader in DApp deposits. The recent Solana network outage highlighted the challenges faced by Ethereum’s competitors in maintaining uptime during peak demand, further reinforcing Ethereum’s dominance in decentralized applications (DApps). According to DefiLlama data, Ethereum holds a significant 57.8% market share in terms of DApp deposits or total value locked (TVL), amounting to $34.8 billion. If layer-2 solutions like Polygon, Optimism, and Arbitrum are included, Ethereum’s dominance extends to 67.4%.
Despite the high fees and congestion on Ethereum, data shows that there were 382,490 active addresses engaging with DApps on the network in the past week alone. This includes popular DApps such as Uniswap, 0x Protocol, Metamask Swap, OpenSea, and 1inch Network. Additionally, when considering layer-2 scalability alternatives, the number of active addresses surpasses 2 million, according to DappRadar data.
While DApp metrics provide insights, the flow of assets remains the ultimate determinant of price. Recent Ether exchange net flows show a significant decrease in reserves, reaching their lowest levels in over a year. Net withdrawals amount to 7 million ETH since April, indicating low demand from holders to sell their coins. Staking metrics also indicate bullish momentum, with a record high of 29.6 million ETH currently locked in staking, according to StakingRewards data.
In terms of Ether derivatives, the futures premium has stabilized at 7% on February 6, indicating balanced demand between leverage longs and shorts during the past week. The options market also shows a neutral delta skew since February 2, suggesting a lack of strong optimism or fear among traders.
Overall, while there are no clear indications of a strong bullish sentiment in Ether’s price, the market remains cautiously optimistic. Traders will be surprised if the bullish momentum continues. It is important for readers to conduct their own research and make informed investment decisions, as this article does not provide investment advice or recommendations.