The Desperate Struggle of Ethereum: Is There Hope for $3K?

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  • Ethereum ETFs gallantly surpassed Bitcoin ETFs during the market’s mid-week turmoil
  • Traders, ever the cautious souls, have been hedging like madmen after the Musk-Trump fiasco

Ah, the great Ethereum! The wise and patient among us have watched with bated breath as U.S Spot Ethereum [ETH] ETFs weathered the storm of Thursday’s market chaos. In the midst of this turbulence, it managed to snatch a humble $11.26 million inflow on June 5th. A triumph? Perhaps. A miracle? Perhaps not.

Contrast this with the poor, struggling Bitcoin ETFs that hemorrhaged a massive $278.44 million in outflows. The result was clear: ETH soared in comparison, a beacon of institutional trust amidst the great sea of doubt. Sixteen days of continuous inflows—remarkable, yes, but does it mean ETH is truly on the brink of greatness? Who can say?

But, ah, in the end, despite the swelling institutional demand, Ethereum itself still faltered, falling by 7% as the world danced to the rhythm of the “risk-off” market. What irony. How quaint!

Assessing ETH’s Struggle for Redemption

On Thursday, as the world anxiously awaited news of its fate, ETH dropped from $2.6k to $2.39k. Yet, in an astounding act of defiance, it managed to claw its way back to $2.4k—at least for the moment. Meanwhile, those who sought profits saw a staggering $454 million worth of losses that same day. Oh, the agony of greed!

For the levered traders, it was a massacre. The bulls lost a grand total of $256M in forced liquidations, while the shorts managed to lose a meager $30M. Oh, how the tables have turned!

But take heart, dear reader. At the time of this writing, the bloodshed had slowed, as if the beast had tired itself. The seller exhaustion constant indicator (what a lovely name!) dropped to levels reminiscent of April, a sign that ETH might—just might—be entering a low-risk buy zone. Pray it’s true.

This indicator, a harbinger of volatility, tends to warn of risky local tops. Yet, at these low readings, one might dare to believe that ETH is near a local bottom. Perhaps—just perhaps—its redemption is near.

Of course, not everyone is so cynical. Trader Income Sharks, a man of hope and unbridled optimism, declared that ETH has weathered the storm, defending the sacred $2.3k range. If this noble trend continues, he believes ETH could once again aim for the $3k summit. Oh, how lovely! But time will tell.

There’s more! Lately, ETH has caught the eye of those who hold the keys to vast Ethereum treasuries. Could this herald a glorious return to the $3k mark? Perhaps. But let us not forget that hope, like all things, is fleeting.

But hold your horses, for there’s a catch. Despite these whispers of a bright future, traders, in their infinite wisdom, have adopted a cautious stance in the short term. Options market insights suggest that the 25 Delta Skew for nearly all tenors (1-week, 1-month, 3-month) plummeted on Thursday. What does this mean? That traders have turned their gaze to puts—those grim bets against Ethereum’s future.

And if that’s not enough, the 1-week and 3-month tenors spiked, signaling that traders, ever the paranoiacs, are hedging like there’s no tomorrow. What prompted this sudden shift? Ah yes, the Musk-Trump drama, that ever-present specter of chaos.

And so, as the 1-week Delta Skew surged, it then dropped from 5% to 3%. Traders, wary of an impending storm, remain hesitant—even as a minor relief bounce nudged ETH back to $2.4k ahead of the weekend. Will it hold? One can only dream.

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2025-06-07 08:10