Ether Holds $2,400 Despite 15% Drop, Investors Bet on Long-Term Growth

Ether (ETH) has shown resilience, maintaining a price near $2,400 despite a recent 15% drop that resulted in $277 million in liquidations. This stability is attributed to growing confidence among investors, who are betting on the long-term growth potential of the cryptocurrency. The futures premium for ETH briefly turned bearish during the price plunge but quickly recovered to a neutral threshold, indicating that traders are regaining confidence in the $2,400 support level.

The recent surge in Ethereum layer-2 scaling solutions has likely contributed to Ether’s rally in early May. This growth coincided with other blockchains overtaking Ethereum in decentralized exchange (DEX) trading volumes. The combined activity on various layer-2 networks has surpassed Ethereum’s monthly DEX volume, highlighting the increasing adoption and utility of these scaling solutions. Many Ether holders are frustrated by the persistently low fees on Ethereum’s base layer, which has driven the growth in ETH supply. However, rollups have enabled scalable solutions, opening new possibilities for use cases like collateralized lending and yield generation.

On June 12, Shopify launched a limited rollout of USDC stablecoin payments on the Base blockchain, which includes a 1% cashback incentive and is expected to fully launch by the end of 2025. This collaboration underlines the low-cost, secure nature of layer-2 blockchain Base. The growth in the Ethereum layer-2 ecosystem and the increasing adoption of layer-2 solutions are likely to sustain investors’ confidence in Ether, despite the recent price volatility.

ETH options markets offer further insight into sentiment among professional traders following the drop below $2,500. In a neutral environment, the 25% delta skew typically fluctuates between negative 5% and +5%, reflecting balanced pricing between put (sell) and call (buy) options. Currently, ETH put options are trading at a 4% discount compared to equivalent call options, which keeps them within the neutral range. This suggests that, despite ETH failing to maintain the $2,500 level, whales and market makers haven’t turned bearish. Part of that optimism may stem from the $830 million in net inflows to Ether US-listed spot exchange-traded funds (ETFs).

Declining ETH balances on exchanges are generally viewed as bullish, since deposits imply a readiness to sell, while withdrawals usually signal staking or long-term holding, reducing immediate supply pressure. As of June 17, the total Ether balance on exchanges dropped to 16.31 million ETH, down from 16.71 million a month earlier. This aligns with Ethereum’s total value locked (TVL), which rose 6% over the same period to $67.2 billion. The strength of the $2,400 support level suggests that Ether’s trajectory is becoming increasingly influenced by rising geopolitical tensions and the ongoing trade disputes between the United States and its key economic partners.