How are ETH bulls positioned after Ether’s 17% weekly gain?

Ethereum has seen a 14% rise, surpassing $4,500, yet skepticism pervades derivatives markets. With increasing competition in decentralized exchanges (DEX), particularly from Solana and others, Ether's appeal is waning due to higher fees and declining active addresses. Although Ethereum maintains a leading $100 billion total value locked (TVL), network activity is stagnant, contributing to subdued derivatives sentiment. Notably, network fees on alternatives like BNB Chain surged over 60%, contrasting with Ethereum's reduced fees and transaction counts. Institutional investment via spot ETFs is anticipated to fuel demand, potentially leading to a supply shock as significant amounts of Ether are accumulated by corporations. Technologies like Hyperliquid are raising concerns among Ether holders by introducing independent chains rather than relying solely on Ethereum’s layer-2 solutions. Overall, while institutional accumulation and ETF approvals could be pivotal in pushing Ether past $5,000, the immediate sentiment remains cautious amidst escalating competition and market dynamics.

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