#EthereumNews#

Despite an 18% drop in ETH prices between July 1 and 8, on-chain and derivatives indicators show that trader confidence is recovering. Although the launch of the US Ethereum exchange-traded fund (ETF) has taken longer than expected, strong fundamentals suggest that prices could rebound quickly. The S-1 application is expected to be approved by the end of September, and despite the uncertainty of the timeline, traders remain cautiously optimistic.

The supply of Ethereum on exchanges continues to decline, with Glassnode data showing that deposits on exchanges fell from 13.34 million ETH two months ago to 12.21 million ETH, indicating that investors are less likely to sell in the short term.

The total locked value (TVL) of the Ethereum network stabilized at 17.7 million ETH, the same as a month ago. Although Ethereum's average transaction fees are higher than many competitors, these data support the view that fiat exchange liquidity has decreased and show resilience.

The growth of Ethereum Layer 2 activity and the resilience of the ETH derivatives market also show signs of optimism. In the past 30 days, Ethereum DApps have reached $200.9 billion in transaction volume, and its Layer 2 ecosystem has expanded significantly. Meanwhile, demand for ETH options on calls is twice as high as on puts, indicating no increase in volume for neutral to bearish strategies.

Overall, both derivatives and on-chain indicators support bullish momentum, while the reduction in the amount of ETH available for trading on fiat exchanges also supports a breakout above the $3,400 resistance level in the short term.