Takeaways from the conference:
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The accumulation of ETH by institutions is robust, as Ether-based ETFs (ETFs) and Bitmine Immersion are leading a spot-driven but healthy recovery.
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Negative ETH funding rates and low DApp revenues suggest traders have doubts about the current rally.
EtherETH(price) managed to hold above 2,300 dollars on Wednesday. It has now moved away from its $1,940 dollar lows on March 29, which were seen in early February. Open interest in ETH futures has reached $25.4billion, indicating an increased demand for leveraged trades. This movement could indicate a turn-around in the momentum of ETH bulls, after 10 unsuccessful attempts to reclaim $2,400.
In order to determine if the change in position is being driven by bulls or bears, it’s important to look at the ETH Futures Funding Rate. The ETH futures funding has been below 5% for the past week, indicating a lack confidence from bulls.
Multiple dips below 0% indicate an excessive demand for negative leveraged positions. In neutral conditions, this indicator ranges between 5% to 10% in order to cover the capital cost.
Even so, it is possible to argue that spot demand has sustained Ether’s recent price rise of $2,350.
US-listed Ether ETFs have accumulated net inflows of $248 million over the last 10 days. This confirms the bullish trend in spot-driven Ether. Bitmine Immersion US, a digital assets treasury provider, announced its acquisition of $312 million worth of ETH. Bitmine currently holds 4,87 million ETH which is equivalent to $11.46 Billion.
CoinGecko reports that, while institutional accumulation can be a sign of strength, Bitmine’s ETH is trading at a 13% discount to its acquisition price. On Wednesday, US-listed Ether ETF asset under management was $13.7 billion, down from $20.50 billion just three months earlier. Ether’s failure to reclaim $2,400 also happened as the S&P 500 index jumped to a new all-time high on Wednesday.
Increased competition due to weak Ethereum network activity
Investors’ decreased appetite for cryptocurrencies is partly due to the decline in activity of decentralized applications. The cryptocurrency market has suffered a negative impact in almost every sector. 2026 bear marketThe platforms include: Memecoin Token Launch Platforms, Synthetic Derivatives Trading, Collateralized Lending, Digital Collectibles (digital collectibles), decentralized Exchanges and Cross Chain Bridges.
Positives: prediction markets The Ethereum network was not affected by the real-world asset market. Investors have begun to wonder if ETH will be able to meet the demand for DApps in future, especially with competing blockchains such as Hyperliquid or Plasma.
Related: ETH/BTC ratio hits 10-week high as Ether outpaces Bitcoin–Are new price highs next?
Ethereum’s DApps revenues have plummeted from early February to just $11 million. Investors accumulate ETH primarily because of the expected increase in onchain computing demand, and subsequent burn mechanism.
Despite increased demand for ETH Futures, the derivatives metrics have not turned bullish. Losses in Ethereum Strategic Reserve companies, and the increased competition within the DApps sector are two possible causes.
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Source: cointelegraph.com
