Ether (ETH) Price Stabilizes Near $2,300 After 20% Drop, Recovery to $2,800 Possible

Ether (ETH) price has stabilized near $2,300 after a sharp 20% drop over three days, hitting a low of $2,255. This decline has shaken market sentiment, as Ether hadn’t traded at these levels since October 2024. However, the ETH derivatives market is showing early signs of recovery and strength, suggesting a potential rebound to $2,800.

ETH Derivatives Market Indicates Early Signs of Recovery

The 30-day ETH futures are now trading at a 7% premium over the spot market, up slightly from 6% two days ago. Premiums between 5% and 10% are considered neutral, as traders typically expect higher returns for the longer settlement period. This shift indicates weaker bearish pressure below $2,600, which could boost confidence among bullish investors.

Weak Macroeconomic Conditions May Deter ETH Price Recovery

The journey for ETH to hit $2,800 again may take weeks or months, but data suggests the lowest price point is likely in the past. Still, the recovery speed depends on investor caution, with recent US unemployment and inflation figures raising concerns.

US jobless claims for the week ending Feb. 22 reached a seasonally adjusted 242,000, the highest in three months. Also, US pending home sales in January fell to a record low, down 4.6% from the prior month, per the National Association of Realtors. Economists surveyed by Reuters, as reported by Yahoo Finance, had predicted a smaller drop of 1.3%.

Investors are increasingly anxious about new import tariffs announced by US President Donald Trump, targeting goods from China, Canada, and Mexico. Trump also threatened a 25% tariff on imports from the European Union, prompting the EU to promise a firm and swift response to unfair trade restrictions, according to CNBC.

Ether Options Markets Display Resilience Despite Price Crash

Currently, the ETH options skew is at -2%, sitting comfortably within the neutral range of -6% to 6%. This suggests resilience among whales and market makers, especially notable since ETH’s price fell 20%. Despite the drop, there’s no significant rush to buy put options, indicating confidence in the market.

Conclusion

Ether’s path to $2,800 remains achievable as its key competitor, Solana, faces declining momentum in the memecoin sector. Meanwhile, Ethereum maintains its dominance in total value locked (TVL), driven by strong demand for liquid staking, lending, yield aggregators, and automated onchain liquidity protocols.

FAQs

Q: What is the current price of Ether (ETH)?
A: The current price of Ether (ETH) is near $2,300.

Q: What is the 30-day ETH futures premium?
A: The 30-day ETH futures premium is currently at 7%.

Q: What is the key factor determining Ether’s price recovery?
A: The key factor determining Ether’s price recovery is investor caution, with recent US unemployment and inflation figures raising concerns.

Q: How does the ETH options skew indicate market sentiment?
A: The ETH options skew is currently at -2%, indicating resilience among whales and market makers, with no significant rush to buy put options, indicating confidence in the market.

Q: What is the current total value locked (TVL) in Ethereum?
A: Ethereum maintains its dominance in TVL, driven by strong demand for liquid staking, lending, yield aggregators, and automated onchain liquidity protocols.

Q: What is the significance of the EU’s response to the US tariffs?
A: The EU has promised a firm and swift response to unfair trade restrictions, indicating a potential impact on global markets.