Ether’s price reached $3,000 on Tuesday, following a rally in the U.S. stock market. However, the increase did not influence trading sentiment significantly due to weak demand for ETH derivatives and the emergence of competing blockchain networks. This cautious sentiment is reflected in the ETH futures premium and put options, signaling an aggressive hedge by traders despite an 8% price rebound.

Key Highlights:

• The annualized premium on ETH futures against spot markets remained unchanged at 3%, indicative of weak demand for leveraged long positions.
• Ethereum’s transaction fees dropped by 49% amid decreased activity in decentralized exchanges, whereas alternative chains, Tron and Solana, saw a 9% rise in their fees.
• The overall market reacted positively to the potential easing of monetary policy by the Federal Reserve, following recent trends of liquidity injections in financial markets.
• Concerns arise as Ethereum continues to lag behind traditional stocks, particularly as central banks hint at more expansionary economic strategies, increasing worries over regulatory pressures and market performance.

Market Outlook

Despite an 8% gain on Tuesday and positive sentiment surrounding U.S. economic policies, traders show limited confidence due to uncertainty in the derivatives market and ongoing concerns about broader market competition. Investors remain watchful amid changes in monetary policies and fluctuating demand across the crypto landscape.

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