Ether held above $2,300 midweek after bouncing from a March 29 low near $1,940, as institutional demand helped rekindle buying pressure. The rebound pushed aggregate ETH futures open interest to about $25.4 billion, signaling more interest in leveraged exposure and a possible change in momentum after roughly 10 weeks of failed attempts to clear $2,400.
Despite rising open interest, perpetual futures funding rates have not sustained high levels. Annualized funding briefly spiked but repeatedly fell below 0%, indicating outsized demand for short (bear) leverage and limited confidence among long positions. By contrast, neutral conditions typically see annualized funding around 5%–10% to compensate the cost of capital, so current readings highlight trader skepticism even as positions grow.
Spot demand appears to be the primary catalyst for the price lift. U.S.-listed Ether spot ETFs recorded approximately $248 million in net inflows over the past 10 days, supporting a spot-driven bullish thesis. Digital-asset treasury firm Bitmine Immersion (BMNR US) disclosed a $312 million ETH purchase and now holds about 4.87 million ETH, roughly $11.46 billion at current prices. CoinGecko data indicates Bitmine’s position sits about 13% below its acquisition cost.
ETF assets under management for U.S.-listed Ether products were about $13.7 billion on Wednesday, down from $20.5 billion three months earlier, showing that longer-term ETF flows remain uneven. Ether’s inability to reclaim $2,400 coincided with the S&P 500 hitting fresh all-time highs, suggesting macro risk-on flows and equity performance may be influencing crypto demand.
On-chain activity and network revenue tell a more mixed story. Weekly DApp revenue on Ethereum has declined to roughly $11 million from around $24 million in early February. The 2026 bear market has reduced activity across many categories—memecoins, synthetic derivatives, lending, collectibles, DEXs and bridges—with only a few niches, such as some prediction markets and select real-world-asset tokenizations, showing resilience.
Competition from newer chains and specialized platforms is another headwind. Projects targeting specific use cases (examples cited include Hyperliquid and Plasma) are attempting to capture niche demand, raising questions about Ethereum’s ability to reclaim on-chain growth. The expectation that rising transaction activity and ETH’s burn mechanism will sustain long-term accumulation becomes less certain if DApp usage continues to contract.
Derivatives and treasury metrics have not flipped decisively bullish. Negative funding readings, losses reported at some Ethereum-focused treasuries, and the broader slowdown in DApp activity mean that, despite higher futures open interest, market indicators remain mixed.
This report is informational and not investment advice. All trading and investment decisions carry risk; readers should conduct their own research and consider consulting a professional before acting. The data and forward-looking comments cited here may change and are not guaranteed accurate or complete.