$ETH hits $3.4K, but pro traders aren’t bullish yet — here’s why
Ethereum ($ETH ) briefly climbed to the $3,400 level, marking its highest price in nearly two months. However, despite the move, professional traders remain neutral to bearish, signaling a lack of confidence in a sustained breakout.
Key reasons behind the cautious stance:
Derivatives market shows hesitation:
ETH monthly futures are trading at roughly a 4% annualized premium over spot. Historically, levels below 5% are considered bearish, suggesting that traders are not willing to pay up for long exposure.
Leverage flush followed the rally:
After touching $3,400, ETH saw a 4% correction over two days, triggering around $65 million in liquidations from leveraged long positions. This highlights fragile upside momentum.
Weak network activity:
Declining transaction fees and soft demand for decentralized applications continue to pressure Ether’s price, reflecting reduced on-chain usage.
ETF inflows not enough to restore confidence:
While spot ETH ETFs and corporate buying have provided some support, lower staking yields and muted network growth are preventing a strong shift in sentiment.
Broader market pressure:
The wider crypto market remains under pressure as capital rotates into traditional assets. In contrast, gold and the S&P 500 have reached new all-time highs in 2026, drawing risk capital away from crypto.
Bottom line
Although $ETH reclaimed the $3.4K level, the move lacks strong confirmation. Until derivatives metrics improve and on-chain activity picks up, professional traders are likely to remain cautious rather than decisively bullish.
