Although the ETH data looks very promising, the Ethereum price recovery will take time

Ether (ETH) experienced a weekly correction of 20.7% between January 6 and January 13, hitting a low of $2,924 and triggering $395 million in leveraged long ETH liquidity. The move has sparked bullish sentiment, but contrary to expectations, ether derivatives are showing strong demand from retail and institutional buyers.

In independent markets, ETH monthly futures premiums typically trade 5%-10% above normal spot prices, reflecting the extended settlement period. Despite a recent dip below $3,000, the indicator remains above that level, reflecting optimism from whales and market makers.

Although Ether Despite setting a 42.7% gain in 2024, sentiment among traders is still not subdued. The asset failed to reach its all-time high of 4,105 on December 16. In addition, its main competitors Solana (SOL) and BNB (BNB) outperformed ETH by 2% in 2025. This underperformance has contributed to the indifference of retailers, consistent with the price movement.

Ether's perpetual futures funding is up 0.6% for the month, slightly below the 0.9% recorded two weeks ago but still in the neutral 0.5%-1.5% range. A bearish sentiment would push this indicator below zero, where short sellers would fund it.

ETH faced resistance at $3,200, losing faith in the ongoing rally

ETH derivatives markets show limited bearish pressure at the $3,000 level. However, failure to recover $3,200 on January 14 suggests that a sustained rally to $3,600 may be delayed. Significant hurdles must be overcome before investors can gain confidence in a long-term recovery.

Ethereum network transaction fees, at an average of $2.70, are high compared to competitors like Solana and BNB. Critics, including DefiIgnas, have argued that many of Ethereum's layer-2 solutions on X lack equity, decentralization and “value addition” to ETH itself, as the companies that manage these networks often hold value for their own benefit.

Concerns have also been raised about layer-2 security. Hassu, a strategist at Flashbots and Lido, said on X, “L2 is its own chain with its own rules and governance. Only bridge properties inherit L1 security. This illustrates a common misconception that Layer-2 transactions share the same security as the Ethereum base layer.

Ether Road to $3,600 is in the roadmap process.

According to Blockworks Research data analyst Dan Smith, including validator tips, Ethereum network fees are down 28% over the week. In contrast, Solana's fees and tips increased by 22 percent over the same period. Additionally, the total revenue and tips generated across all Ethereum Layer-2 networks in the last seven days was only $1.1 million.

Related: Solana, XRP ETFs Could Attract Billions in New Investment – JPMorgan

Despite these challenges, Ethereum remains the leading platform for decentralized applications (DApps), with a total value of $64.5 billion locked in (TVL). By comparison, its closest competitor, Solana, has $8.6 billion. In particular, Ethereum's layer-2 ecosystem contributes $10.2 billion to the total TVL, indicating its growing importance in the network.

Ultimately, Ethereum's ability to reach $3,600 or more will hinge on the progress of the Ethereum roadmap. Many decentralized finance (DeFi) users are rejecting Ethereum's decentralized ethos, opting for more centralized systems for lower fees. As a result, while the ETH derivatives markets are showing some optimism, it is not enough to boost traders' confidence significantly in the short term.

This article is not intended for general information purposes and should not be construed as legal or investment advice. The views, ideas and opinions expressed herein are solely those of the author and do not necessarily represent the views and opinions of Cointelegraph.