BlockBeats news, February 10, as Bitcoin and U.S. stocks rebounded, ETH price recovered above $2,100. Previously, ETH had plunged 43% within 9 days, hitting a low of $1,750, followed by a technical rebound of about 22%. However, multiple data points indicate that the market remains cautious about ETH’s short-term trend.
In the derivatives market, ETH’s two-month futures annualized premium is only about 3%, below the neutral level of 5%, indicating insufficient trader risk appetite, with shorts still dominating. Even as prices rebounded, derivatives sentiment has not significantly improved over the past month.
From an on-chain and fundamental perspective, ETH has underperformed the overall crypto market by about 9% since 2026, raising questions about capital flows. However, in terms of TVL and fee revenue, Ethereum still maintains an absolute lead: its mainnet accounts for 58% of the industry’s TVL, and when combined with Base, Arbitrum, and Optimism, the share exceeds 65%.
But issues are also prominent. Due to slowing on-chain activity, Ethereum has failed to maintain deflation, with ETH’s annualized supply growth rate rising to 0.8% over the past 30 days, significantly higher than the near 0% level a year ago. Meanwhile, concerns around Layer2 subsidies and security continue to escalate. Vitalik Buterin recently stated directly that mainnet scaling should be re-emphasized, acknowledging that some current L2 solutions still fall short in decentralization and security.
Analysis suggests that amid rising uncertainty in the U.S. job market and doubts about the sustainability of AI infrastructure investments, overall risk appetite remains weak. The sluggishness in the derivatives market reflects investors’ lack of confidence in ETH forming a sustainable reversal in the short term, and whether a phased bottom has been confirmed still requires more time and data for validation.
