Key TakeawaysEther (ETH) futures premium stayed above the neutral 5% threshold, signaling resilience despite recent losses.Onchain metrics highlight Ethereum’s dominance in fees and TVL, strengthening long-term recovery prospects.ETH found support near $4,070 after a sharp 15% drop, with traders showing no panic despite macro headwinds.Ethereum’s seven-day fees surged 38% to $11.2M, reinforcing demand for blockspace.ETH Finds Support After 15% CorrectionEthereum price (ETH) stabilized near $4,070 on Wednesday following a six-day, 15.1% decline that erased more than $817 million in leveraged long positions. Despite the sell-off, ETH derivatives suggest traders remain relatively calm, with many still targeting the $4,700 level as a near-term recovery point.The ETH six-month futures annualized premium held above 5% throughout the downturn, indicating that professional traders did not expect extended downside. Although optimism has not fully returned since ETH’s 100% rally earlier this summer, the absence of bearish positioning reflects resilience.Macroeconomic Uncertainty Weighs on SentimentCaution in ETH futures also reflects broader economic uncertainty. U.S. inflation remains sticky, and concerns over overvalued tech stocks pressured the Nasdaq for a second straight day. CNBC reported traders trimmed exposure ahead of Fed Chair Jerome Powell’s Jackson Hole speech, which could set the tone for rate cuts—or further delays.Carol Schleif, chief market strategist at BMO Private Wealth, noted that if Powell’s remarks lean hawkish, “that could pressure tech stocks even further.” Meanwhile, disappointing earnings from Target highlighted consumer and profitability stress.ETH options markets also remain balanced, with the 30-day delta skew at 4%, showing nearly equal demand for puts and calls. Analysts warn that the lack of enthusiasm—even after ETH briefly topped $4,700—is a sign of trader hesitation toward calling new highs.Onchain Data Paints Bullish PictureWhile derivatives remain cautious, Ethereum’s onchain activity continues to strengthen. According to DeFiLlama, Ethereum commands about 60% of total value locked (TVL) across blockchains, far ahead of competitors.Network fees climbed 38% in a week to $11.2 million, per Nansen, underscoring rising demand for blockspace. By contrast, Solana fees gained just 3% while BNB Chain’s fell 3%. Ethereum also dominated decentralized exchange (DEX) volumes, processing $129.7 billion over the past 30 days, according to Cointelegraph.OutlookEthereum’s recovery depends heavily on broader market sentiment and macro signals. Still, the combination of solid derivatives positioning and strengthening onchain demand suggests ETH’s fundamentals remain intact. If investor fears ease after Powell’s Jackson Hole remarks, analysts say Ether could retest $4,700 sooner than expected.
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