Ethereum’s price strength is supported by rising futures market data and growing network activity

 

Ether Holds Steady While Broader Crypto Market Faces Pressure

While Bitcoin and most altcoins saw notable pullbacks this week, Ether (ETH) has managed to retain the bulk of its recent gains, continuing to show resilience relative to the wider market.

As of now, ETH is trading at $2,525, having failed multiple times to break through the $2,700 resistance level since May 13. Despite this short-term struggle, ETH has outperformed the broader cryptocurrency market by 17% over the past 30 days, signaling strength but also increasing the risk of a price correction amid ongoing macroeconomic uncertainty.

Weak DApp Demand Raises Concerns

Investor sentiment remains cautious, in part due to declining usage of decentralized applications (DApps) across all major blockchains. This trend is often cited as a reason ETH still trades 48% below its all-time high of $4,870, set in October 2021. Similarly, the total value locked (TVL) across the crypto industry remains at $122 billion, down 43% from its December 2021 peak.

Still, Ethereum continues to dominate the TVL landscape, commanding a 54.2% market share. Its leading layer-2 scaling solutions contribute an additional 6.3%, which significantly reduces competitive pressure from other blockchains. In fact, Ethereum’s combined TVL is over four times larger than that of its closest rivals, Solana and BNB Chain.

Ethereum vs. Solana: Revenue and Activity

Critics argue that Ethereum was unprepared for the memecoin mania of early 2025, which notably boosted on-chain activity on Solana — especially following the launch of the Official Trump (TRUMP) token in January. Although a few Solana-based DApps saw surging usage, the long-term benefit to SOL holders remains questionable.

Over the past 30 days, the top four DApps on Solana — Meteora, Pump, Jito, and Axiom — generated $356.3 million in fees. However, the Solana network itself captured only $48.5 million of that, highlighting a revenue model that puts downward pressure on SOL, as some projects continue to liquidate their treasuries.

In contrast, Ethereum’s top four DApps earned $169 million in fees over the same period, while users paid $38.3 million in base layer gas fees — a more balanced distribution that may prove more favorable to ETH investors, especially given the growing reliance on layer-2 solutions.

Futures Data Reflects Steady Sentiment

After ETH’s 9% price dip between May 29 and May 30, it’s worth assessing futures markets to gauge investor mood. Despite $159 million in liquidated long positions, the annualized premium on ETH futures remains close to 6% — comfortably within the 5% to 10% "healthy" range, suggesting that traders have not turned significantly bearish.

While some investors express frustration over Ethereum’s lack of standout advantages — and the muted impact of its latest network upgrade — the layer-2 ecosystem is now handling over 15 times more transactions than the base layer, pointing to robust scalability improvements.

Macro Risks Loom, But Fundamentals Support ETH

Going forward, ETH’s price direction will likely hinge on broader macroeconomic factors, including global recession risks and escalating trade tensions. A drop below the $2,400 support level remains a possibility, but Ethereum’s dominant market share in TVL and expanding transaction capacity on layer-2 networks should help buffer any downside, making it less vulnerable than many altcoins.