Ethereum Price: Positive Data, But Rebound Needs Time

Moderate optimism in Ethereum derivatives data has reportedly not restored confidence among short-term investors. Even though the data looks bullish, a price rebound is expected to take time.
According to reports, Ethereum (ETH) recorded a weekly drop of 20.7% from January 6 to 13, dropping to $2,924, causing the ETH coin worth $395 million to drop.
Leveraged long positions were liquidated. The drop tempered bullish sentiment, but contrary to expectations, the Ethereum derivatives market saw strong interest from both retail and institutional investors.
In a neutral market, ETH monthly futures premiums typically trade at 5-10% above spot prices, reflecting an extended settlement period.
Despite dropping below $0, the indicator is still above the baseline, suggesting optimism among whales and market makers.
Ethereum has recorded a 42.7% increase in 2024, but investors are still in a good mood. ETH hits new all-time high
It was unable to do so and peaked at $4,105 on December 16. Furthermore, its main competitors Solana (SOL) and Binance
Bitcoin (BNB) has risen 2% since the start of 2025, highlighting the relative underperformance of ETH, which has led to a decline in interest from retail traders and a drop in the price.
The Ethereum perpetual futures funding rate was 0.6%, slightly lower than the 0.9% recorded two weeks ago, and in the range of 0.5% to 1.5%.
Bear markets typically drive this indicator below zero, which means short sellers are incurring financing costs.
The ETH derivatives market saw limited bearish pressure at the $3,000 level, but the failure to recover to $3,200 on January 14 was a major obstacle for the 36
This highlights the possibility that a sustained rebound towards $00 may be delayed. Important hurdles need to be resolved before investors can feel confident about a long-term recovery.
The average transaction fee on the Ethereum network is $2.7, which is still high compared to competitors such as Solana and Binance Coin.
DefiIgnas criticized "many Ethereum Layer 2 solutions for lacking fairness, decentralization, and the ability to store value in ETH itself" at X. He said these
They argued that the companies that control the networks are capturing the value for their own profits. They also raised concerns about Layer 2 security.
"Layer 2 is an independent chain with its own rules and governance. Only assets connected by bridges inherit the security of L1," Hasu, a strategist at Xiaomi, said in a statement.
"It's a misconception that Layer 2 transactions share the same security as Ethereum's base layer," he explained, highlighting the misconception that Layer 2 transactions share the same security as Ethereum's base layer.