Ethereum Futures Hit A 7-Month Low As It Tests The $2,400 Support

Ethereum Shanghai

Ethereum prices have dropped 30% in just two weeks and the data shows how traders are bearish even though they rallied back towards $2,800 on February 25.

Ethereum had reached a local high of $3,280, which marked a 51.5% recovery from the lows of $2,160 on January 24. This price was the lowest in almost 6 months and partially explained why the trader’s main sentiments plummeted to bearish levels.

ETH’s futures contract annualized premium, or basis, reached 2.5% on Feb. 25, reflecting bearishness despite the 11% rally to $2,700. The worsening conditions depict investors’ doubts regarding the Ethereum network’s shift to a proof-of-stake (PoS) mechanism.

Cointelegraph Reported About The Ethereum Upgrade

As reported by Cointelegraph, the much-anticipated sharding upgrade that will significantly boost processing capacity should come into effect in late 2022 or early 2023.

Analyzing Ether’s performance from a longer-term perspective provides a more appealing sentiment, as the cryptocurrency is currently 45% below its $4,870 all-time high.

Furthermore, the Ethereum network’s adjusted total value locked (TVL) has held a reasonable 42.8 million ETH despite the price correction.

As shown above, the network’s TVL increased by 16.5% in three months, reflecting growth from decentralized finance (DeFi) and nonfungible token (NFT) marketplaces.

However, due to network upgrade delays and worsening global macro conditions, professional traders are becoming frustrated and anxious, a sentiment that is depicted in multiple derivatives metrics.