Brutal 20% Ethereum price sell-off is not over, but is there a silver lining for ETH?
Ethereum price has yet to recover from its 20% correction, but investors’ choice to pivot away from memecoins and Solana could be ETH’s saving grace.
Ether (ETH) price stabilized near $2,300 after a sharp 20% drop over three days, hitting a low of $2,255. This decline shook market sentiment, as Ether hadn’t traded at these levels since October 2024. However, the ETH derivatives market is showing early signs of recovery and strength, suggesting a potential rebound to $2,800.
Ether 30-day futures premium, annualized. Source: Laevitas.ch
The 30-day ETH futures are now trading at a 7% premium over the spot market, up slightly from 6% two days ago. Premiums between 5% and 10% are considered neutral, as traders typically expect higher returns for the longer settlement period. This shift indicates weaker bearish pressure below $2,600, which could boost confidence among bullish investors.
