Ethereum [ETH] has traded within a tight structure lately. Over the last 90 days, ETH has navigated a heavy corrective phase, recently coiling into a narrow band between roughly $1,930 and $2,150. Such a range-bound structure usually alludes to a market attempting to find a floor after a volatile start to the year.
In 30 days, the asset gained by 6.4%, followed by a modest 1.52% hike over the past week at press time. In the last 24 hours, the price added another 2.95%, hinting at gradual spot demand returning to the market. Market capitalization was $252.4 billion, securing about 10.4% dominance within the $2.43 trillion crypto market.
Ethereum adoption rises despite bearish derivatives sentiment
Now, ehile derivatives markets signaled caution, on-chain activity revealed a different trajectory for Ethereum.
Network usage has continued to expland, with daily active addresses averaging 768,632. This rise is indicative of steady engagement, rather than speculative spikes.
Retail wallets also showed accumulation near the $2,000-level, suggesting deliberate entry during consolidation. Activity further intensified across Layer-2 ecosystems, with the same now processing over 67 times mainnet throughput. At the time of writing, Lighter [LIT] led this growth with nearly 4,000 UOPS, while Base recorded a steady 7.75% increase in usage.
DeFi participation has been strong too, with TVL reaching $56.99 billion. Stablecoin liquidity also held near $162 billion, sustaining on-chain activity. Exchange balances fell to multi-year lows as long-term holders maintained positions as well.
Together, these signals seemed to suggest that retail investors increasingly hold through volatility, rather than distribute supply.
Derivatives positioning exposes downside liquidity risk
At the time of writing, Ethereum was trading near $2,100 while derivative positioning highlighted growing tension under the stable price action.
Over the last 90 days, Smart Money CVD fell to roughly –$5.7 billion. This drop seemed to be illustrative of sustained aggressive selling across Binance Futures markets.
And yet, the price has remained confined between $1930 and $2,150, indicating steady absorption of sell pressure. At the same time, derivatives markets Open Interest now exceeds $107 billion – A sign of rising speculative exposure.
Liquidations also crossed $260 million within 24 hours, highlighting fragile leverage conditions. Finally, Funding Rates were slightly positive near 0.0021%, showing modest long bias.
On the contrary, liquidation heatmaps revealed a concentration of dense, long clusters in the immediate $2,080–$2,100 zone. While a secondary floor of liquidity exists near the $1,975–$2,000 psychological level, it is the breakdown of the $2,080 support that poses the most immediate risk of a cascade.
Worth noting though that a bright resistance cluster at $2,115–$2,120 acts as a ceiling. A clean breakout above this level would likely force a short squeeze, clearing the path towards the $2,200 range.
Final Summary
- Ethereum [ETH] saw steady network growth and retail accumulation near $2,000 despite persistent bearish positioning across derivatives markets.
- Dense liquidation clusters leave the price vulnerable to either a downside cascade or a short squeeze towards $2,200.
Muriuki Lazaro
JournalistMuriuki Lazaro is a on-chain data analyst with a B.Sc. in Data Science. Muriuki specializes in dissecting complex on-chain data into clear and accurate insights for readers in the crypto ecosystem, with a particular focus on Bitcoin.
