Ethereum Rebounds: $2,800 in Sight Despite Market Jitters

Ethereum's (ETH) price has stabilized near $2,300 after a sharp 20% drop over three days, reaching a low of $2,255. This decline has shaken market sentiment, as Ether hadn't traded at these levels since October 2024. However, the ETH derivatives market is showing early signs of recovery and strength, suggesting a potential rebound to $2,800.

The 30-day ETH futures are now trading at a 7% premium over the spot market, up slightly from 6% two days ago. Premiums between 5% and 10% are considered neutral, as traders typically expect higher returns for the longer settlement period. This shift indicates weaker bearish pressure below $2,600, which could boost confidence among bullish investors.

The journey for ETH to hit $2,800 again might take weeks or months, but data suggests the lowest price point is likely in the past. Still, the recovery speed depends on investor caution, with recent US unemployment and inflation figures raising concerns. US jobless claims for the week ending Feb. 22 reached a seasonally adjusted 242,000, the highest in three months. Additionally, US pending home sales in January fell to a record low, down 4.6% from the prior month.

Investors are increasingly anxious about new import tariffs announced by US President Donald Trump, targeting goods from China, Canada, and Mexico. Trump also threatened a 25% tariff on imports from the European Union, prompting the EU to promise a firm and swift response to unfair trade restrictions. Nvidia's shares fell 3.3% on Feb. 27, despite exceeding quarterly earnings forecasts and providing strong guidance for Q1 2025, reflecting investor nervousness. Meanwhile, gold prices dropped 2.2% in two days, sliding to a two-week low of $2,870, highlighting broader market concerns impacting even safe-haven assets.

Ether options markets display resilience despite the price crash. The ETH options skew is at -2%, sitting comfortably within the neutral range of -6% to 6%. This suggests resilience among whales and market makers, especially notable since ETH's price fell 20%. Despite the drop, there's no significant rush to buy put options, indicating confidence