Ethereum price struggles to reclaim its bullish momentum, but @noshitcoins says ETH derivatives markets and activity within layer-2 platforms could be in the bulls' favor.
) price faced a significant setback after encountering robust resistance at the $4,100 mark on March 12. Ether has seen a 9% decline over the past week, underperforming when compared to the broader cryptocurrency market, leading traders to speculate whether the current support level of $3,200 will hold. For context, the total cryptocurrency market capitalization fell by 2.5% during the same timeframe.
Cointelegraph notes that, in theory, Dencun’s enhancements are expected to encourage Ethereum users to embrace layer-2 solutions. Data indicates a surge in 7-day volumes for Arbitrum, Optimism, and Base by 145%, 144%, and 203%, respectively, thereby alleviating some of the downward pressure on Ether’s price that was attributed to high gas fees.) provide significantly lower transaction fees at the base layer, which often appears more accessible to newcomers.
To understand if professional traders flipped bearish after Ether’s price decline, one should use the ETH options 25% delta skew as a proxy. A skew metric rising above 7% indicates anticipations of a price drop, whereas a negative 7% skew typically reflects bullish sentiment.From March 21 to the present, the ETH options 25% skew has increased from 0% to 5%, suggesting a cautious skepticism toward the $3,200 support level.
Looking at the bigger picture, the Ethereum network maintains its leading position in terms of deposits, with a total value locked of $94 billion. The initiative by BlackRock, the world's largest asset manager, to launch aon Ethereum solidifies the network's prominence. Consequently, there seems to be no compelling reason to doubt that Ether's support at $3,200 will break in the near term.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.Bitcoin price retests $63K despite GBTC outflows dropping below $100MWhy boomers ‘like’ AI pics on Facebook, mind-reading AI breakthrough: AI Eye
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