Ethereum price moves toward $3K, but pro traders choose not to add leverage

  ETH price is storming toward a key resistance level, but pro traders are reluctant to add leverage for three important reasons.

Even though Ether (ETH) price bounced over 20% from the $2,300 low on Feb. 22, derivatives data shows that investors are still cautious. To date, Ether's price is down 24% for the year, and key overhead resistances lay ahead.

Ethereum's most pressing issue has been high network transaction fees and investors are increasingly worried that this will remain an issue even after the network integrates its long-awaited upgrades.

For example, the 7-day network average transaction fee is still above $18, while the network value locked in smart contracts (TVL) decreased 25% to $111 billion between Jan. 1 and Feb. 27. This negative indicator could partially explain why Ether has been down-trending since early February.

Ethereum price moves toward $3K, but pro traders choose not to add leverage

The above channel currently shows resistance at $3,100, while the daily closing price support stands at $2,500. Therefore, a 14% rally from the current $2,750 level needs to happen for the prevailing downward trend to be canceled.

Derivatives markets show fear as the prevailing sentiment

The 25% delta skew compares equivalent call (buy) and put (sell) options. The indicator will turn positive when "fear" is prevalent because the protective put options premium is higher than the call options.

The opposite holds when market makers are bullish, causing the 25% delta skew to shift to the negative area. Readings between negative 8% and positive 8% are usually deemed neutral.

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