Key Points
- Institutional demand for ETH remains strong. This is evident from inflows into Ethereum ETFs and the activity of companies like Bitmine Immersion, which supports growth through the spot market.
- DApp revenues remain weak, and ETH funding rates are turning negative. This indicates that traders are still uncertain about the sustainability of the current rally.
The price of Ethereum held above $2,300 on Wednesday, rebounding from lows of $1,940 recorded on March 29. Against this backdrop, open interest in ETH futures reached $25.4 billion, indicating increased demand for leveraged positions.
This movement may signal a shift in market sentiment. After ten weeks of failed attempts to hold above $2,400, bulls finally have a chance to seize the initiative.
Aggregate open interest in ETH futures. Source: CoinGlass
To understand who is currently moving the market, you need to look at ETH futures funding rates. Right now, they have not been able to stay above 5% since Friday, which indicates weak confidence from buyers.
Annualized funding rate for ETH perpetual futures. Source: Laevitas
The rate has already dropped below 0% several times. This indicates increased demand for short leveraged positions. Under normal conditions, the rate should be in the range of 5–10% to compensate for the cost of capital.
At the same time, there is another side to this.
Such dynamics may mean that the rise of ETH to $2,350 is mainly supported by spot demand, not derivatives.
Net daily inflows into ETH spot ETFs. Source: SoSoValue
Over the past 10 days, spot ETFs for Ethereum in the US have received net inflows of $248 million. This confirms that the current rally is based on real buying, not just speculation.
At the same time, Bitmine Immersion announced the purchase of ETH worth $312 million. It now holds 4.87 million ETH on its balance sheet, equivalent to about $11.46 billion.
Despite this, not everything is so clear-cut.
See Also: CFTC Reviews Oil Trades Ahead of Trump Statements
According to CoinGecko, the current value of Bitmine‘s assets is about 13% below the purchase price. The same situation applies to ETFs. On Wednesday, assets under management totaled $13.7 billion, whereas three months ago this figure was $20.5 billion.
At the same time, ETH still cannot hold above $2,400, even though the S&P 500 index hit a new all-time high on the same day.
Weak Ethereum Network Activity and Rising Competition
The decline in investor interest in the crypto market is largely due to a drop in activity in decentralized applications. Nearly all industry segments suffered from the 2026 bear market. This includes meme coin launch platforms, synthetic derivatives trading, lending, NFTs, decentralized exchanges, and cross-chain solutions.
Even those areas that are showing growth have not been able to impact activity on the Ethereum network. This refers to prediction markets and real asset tokenization.
Against this backdrop, investors are increasingly wondering whether ETH will be able to maintain its position in the future. Especially as new blockchains focused on specific tasks emerge, such as Hyperliquid and Plasma.
Weekly DApps revenue on the Ethereum network. Source: DefiLlama
Revenues from DApps on the Ethereum network have dropped sharply. They are now about $11 million per week, whereas at the beginning of February this figure reached $24 million.
One of the key drivers of demand for ETH is the expectation of increased on-chain activity. The higher the network load, the more tokens are burned, which creates incentives for long-term holding.
However, despite growing interest in futures, derivative metrics have not yet entered a bullish phase.
Possible reasons include losses by companies forming strategic reserves in ETH, as well as increasing competition in the DApps sector.
Turning Point for ETH or Temporary Rebound
Right now, Ethereum is at a rather sensitive point. On the one hand, there is clear support from institutions and the spot market. Money is flowing in, derivative activity is growing, and this creates the impression that the market is ready to continue moving.
But if you look deeper, the picture is not so clear.
Weak activity within the network itself remains the main drag. As long as users are not returning to DApps, all the growth seems somewhat detached from the real economy of Ethereum. And this is exactly what underpins the asset’s long-term value.
See Also: Enjin Coin Surges 300% From Near Zero — What Is Happening
Plus, competitive pressure is mounting. New projects are not just copying Ethereum, but trying to solve specific problems, whether it’s speed, fees, or convenience. And if some users start to migrate there, it could hit ETH‘s position harder than it seems now.
As a result, the market is at a classic crossroads. Either the current rally will turn into a full-fledged trend with a return of activity to the network, or it will remain a local rebound amid capital inflows.
The coming weeks will show which scenario prevails.
