ETH Rally Toward $2.5K Held Back By Macro, War, DApp Use
Ether's potential rally to $2.5K is currently hindered by macroeconomic instability, geopolitical conflict, and declining decentralized application activity.Summary
Ether (ETH) recently dropped 6% to track a downturn in US equities, influenced by escalating conflict in the Middle East, which pushed oil prices higher and fostered a risk-off sentiment among investors. This macroeconomic pressure, coupled with a legal setback for the Trump administration's tariffs, is stifling ETH's momentum despite a prior recovery. Derivatives markets show apathy from bulls, with the 30-day futures premium below neutral, and the options skew indicating professional desks are hedging against potential downside risks. Furthermore, on-chain metrics reflect declining network utility; weekly Decentralized Exchange (DEX) volumes and DApp revenues have fallen significantly, impacting the burn mechanism. Despite these headwinds, Ethereum maintains dominance, holding nearly 65% of the total blockchain market's Total Value Locked (TVL) when including Layer-2 solutions, suggesting institutional preference for its decentralization. A sustained bullish move for ETH hinges on reclaiming the $2,400 level and a subsequent pickup in DApp activity.
(Source：Cointelegraph)