Ethereum Tests $2,250 Support... On-Chain Demand Provides Floor

Ethereum (ETH) rose 0.43% in one day, maintaining a stagnant trend around the $2,258.85 mark. Following the Binance hack, increased arbitrage trading boosted network utilization, while expanding bullish bets in the options market supported investor sentiment. Market observations suggest that if the $2,250 support level is maintained, Ethereum could retest $2,300.

According to CoinMarketCap, a cryptocurrency market data aggregator, as of November 1 (KST), Ethereum traded at $2,258.85, up 0.43% over the past 24 hours. Ethereum, the second-largest cryptocurrency by market capitalization, showed a slightly better performance than the overall stagnant market. On the domestic exchange Upbit, it traded at 3,028,000 won (down 0.33% in 24 hours). While overseas prices rose slightly, the Korean won price declined, showing conflicting directions.

Increased on-chain activity supported Ethereum's price. Block builder Titan Builder generated approximately $22.83 million in revenue over 24 hours, influenced by increased arbitrage trading following the Binance hack. This signals strong demand for block space and priority transaction fees, directly benefiting network economic activity. This is assessed as demand based on actual usage, rather than speculative expectations, propping up the price floor, and the key is whether high fee revenues will continue.

The expansion of bullish positions in the derivatives market also contributed to improved investor sentiment. Ethereum option open interest was tallied at $5.85 billion, an increase of 9.86%, with call options accounting for 62% of this. The 24-hour net social sentiment score was 5.05, indicating a slight shift from a fear phase to cautious optimism. However, these factors are not the primary drivers of an uptrend. Analysis suggests that traders' confidence could waver depending on changes in the put-call ratio or a reversal in funding rates.

In the short term, whether the $2,250 support holds is a key variable. The $2,250 level is the 50% Fibonacci Retracement level and a psychological baseline; defending it could lead to a retest of $2,300. Currently, Ethereum is testing the $2,261.79 level, which is the 23.6% Fibonacci Retracement level. Conversely, if $2,250 breaks, there is a risk of further decline to around $2,230, the recent swing low. Ethereum remains in a consolidation phase within a larger downtrend, and a recovery to the $2,300 range is needed for a rebound to gain strength.

Whether the $2,250 support line is defended is expected to determine the short-term direction over the next 24-48 hours. Binance's proof-of-reserves report, scheduled to be released by November 2, is considered a key event that will influence overall market sentiment. Experts predict that market instability could increase again depending on this report and news related to the Binance situation.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*