Summary
- It said that key on-chain indicators for Ethereum (ETH) are improving, prompting discussion of a short-term rebound.
- It noted that expanding network fee revenue, Layer 2 (L2) activity, and decentralized exchange (DEX) trading volume are underpinning increased utilization across the Ethereum ecosystem.
- It said the put/call ratio in the derivatives market has returned to neutral levels, raising projections that ETH could rebound in the short term to around $3,300.
As the broader virtual-asset (cryptocurrency) market remains under pressure, key on-chain indicators for Ethereum (ETH) are showing signs of improvement, fueling talk of a short-term rebound.
According to crypto-focused media outlet Cointelegraph on the 27th (local time), ETH has fallen about 15% over the past week, but network fee revenue and Layer 2 (L2) activity have increased. Decentralized exchange (DEX) trading volume is also trending higher.
Multiple market experts pointed to the Ethereum Fusaka upgrade carried out late last year as a key driver. They said the upgrade improved data throughput and lowered fee burdens, boosting usage across the broader Ethereum ecosystem.
In derivatives markets, investor sentiment also appears to have eased somewhat. The put/call ratio has returned to neutral levels, suggesting excessive downside bets have diminished. Against this backdrop, some in the market are projecting that ETH could rebound in the short term to around $3,300.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
