Ether experienced a 6% drop after briefly reaching $2,200, influenced by geopolitical tensions in Iran, rising oil prices, and a decline in U.S. equities. According to NS3.AI, these factors have impacted risk appetite among investors. ETH derivatives metrics indicate a low demand for bullish leverage and an increasing demand for downside protection. Additionally, weekly Ethereum decentralized exchange (DEX) volume decreased to $12.6 billion from $20.2 billion a month ago. Despite a reduction in on-chain activity, Ethereum maintains a strong position with $55.4 billion in base-layer total value locked (TVL) and nearly 65% of blockchain TVL when including layer-2 solutions. This supports its long-term potential if demand for decentralized applications (DApps) recovers.