Ether Price Takes A Nose Dive—Are We All About To Lose Our Minds?

by

So Ether (ETH) took a swan dive to $1,410 on April 7—because clearly, it ran out of coffee and decided to test how low it could go. We’re talking about the worst dip since March 2023, and the crypto paparazzi are living for the drama. In the span of two days, over $370 million in leveraged ETH futures got liquidated. Ouch. And yet, by some miracle or cosmic joke, Ether hopped back above $1,500. Maybe it just remembered it was supposed to be “the future of finance,” or maybe the S&P 500 index coaxed it back with a warm hug at its 5,000 support level. ❤️

No surprise, Ether has been limping along, underperforming the broader crypto scene by 14% over the past 30 days. But professional traders, those wide-eyed optimists, still aren’t fully ready to bury ETH for good. The derivatives data and onchain metrics claim the crypto patient might still have a pulse. Of course, convincing folks that the bottom is in is like telling your grandma how NFTs work—nobody is 100% sure. Still, the noticeably smaller appetite for apocalyptic bearish bets below $1,600 might give the faithful a reason to keep the champagne chilled.

On April 7—our day of dizzying price drama—the Ether monthly futures premium rebounded to 4% from a super cozy 3% just hours earlier. Sure, it’s still under the neutral 5% threshold, but hey, baby steps. This is a jump from March 31’s frightening 2%. Right now, the line for buyers is sparse, but after a month of Ether plunging a full 30%, it’s understandable. They’re probably sipping anxiety tea and double-checking their life choices.

Ether: A helpless bystander in the great macro-economic meltdown

Investors everywhere are clutching their pearls, convinced that rising global trade tensions could spark an economic recession, scaring folks away from risky assets (like, ahem, the entire crypto world). In a parallel universe, the Fed might cut interest rates in early May, which usually gives cryptos a little pep in their step. But because life loves irony, we can’t bank on that. 😬

President Donald Trump took to Truth Social on April 7—like a moth to a flame—to demand lower interest rates. Meanwhile, Fed Chair Jerome Powell is reportedly not into easy mode quite yet. It’s basically a monetary soap opera: folks want the Fed to play Santa, but Powell is the cautious babysitter who volunteers to read the fine print on cereal boxes.

As if that weren’t enough, Ethereum’s developers postponed the Pectra upgrade from April to May 7. No real explanation, just a shrug, but hey, at least the Hoodi testnet upgrade played out without cosmic explosions on March 26.

Moderately heroic Ether derivatives & soaring Ethereum TVL

You’d think all this gloomy news would have Ether bears doing a victory dance in spandex. But the derivatives data says otherwise. Typically, when doom is on the menu, put (sell) options become all the rage, giving us a 25% delta skew above 6%. In bull paradise, it’d drop below -6%—like wearing shades indoors because things are so bright.

At the moment, ETH options skew stands at 10%, still in mildly depressed territory—though not as bleak as May 2024’s heartbreak at 20%. So we’re not exactly decked out in party hats, but we’re also not crying on the floor, hugging our laptops and singing sad ballads.

Meanwhile, onchain data reveals Ethereum has some secret spinach hidden in the fridge: total value locked (TVL) soared to an all-time high of 30.2 million ETH on April 6—up by a charming 22% in a month. That’s breezily beating Solana’s 12% and BNB Chain’s 16%. Guess we’re all piling into ETH’s party bus, hoping it doesn’t break down on the highway. 🙏

The macro landscape remains the suspicious bouncer deciding who gets into the crypto club. But judging by Ether derivatives and that sweet, sweet TVL, ETH might have found a tiny umbrella in the downpour.

Excuse me while I remind you that the comedic cynicism you detect is simply me, channeling my inner spicy commentator. This article is just general info and not your personal lawyer or financial guru. The writer’s views are their own—and frankly, who’d dare claim them? If you’re bold enough to invest based on a random article, best of luck. May the crypto gods smile upon you.

Read More

2025-04-07 22:34