ETH derivatives signal caution as professional traders are neutral-to-bearish amid weak DApps demand and falling fees. A 4% correction saw $65M in leveraged long ETH futures liquidations, despite ETH hitting a 2-month high. Corporate ETH buying and spot ETF inflows fail to restore investor confidence, with staking risks and soft network activity persisting.

ETH monthly futures trade at a 4% annualized premium, below 5% deemed bearish. ETH drop to $3,280 mirrors a 28% crypto market cap decline, impacting DApps demand. Ethereum base layer transactions rise by 28%, but fees fall by 31%. Ethereum’s largest scaling solution sees a 26% transaction decline.

Whales and market makers are sensitive to network usage, impacting ETH staking returns. Ethereum’s weak momentum is tied to low fees, DApps demand, and staking risks. Despite weaker DApps demand, traders lack confidence with neutral institutional flows. ETH put options trade at a 6% premium, signaling a neutral-to-bearish market outlook.

ETH price heavily relies on external factors, with professional traders skeptical due to weak DApps demand and staking concerns. Declining network fees reduce bullish momentum likelihood. Traders are cautious about a bullish breakout to $4,100 in the near term. ETH price remains dependent on external factors rather than internal developments.

Read more at Cointelegraph: ETH Hits $3.4K But Several Factors Put A Pause On Ether’s Rally