Ether seems to be on a downward trend, with a level of $2000 forming a crucial level of resistance in the last few months. While the cryptocurrency managed to record gains of 11.94%, wherein it moved past $30,000 in June after BlackRock went on to file an application for the ETF with the Securities and Exchange Commission in the United States- whereas the upside in Ether stayed around till 3.16%. In the very first week of July however, the buyers tried to move the price beyond the point of crucial resistance at around $1,900. However, a breakout failure exposed the price to further and responsible correction.
The Price Chart of Ether Reflects A Major Weakness
The network of Ethereum also experienced a decline in activity- which is evident in the one-year-low levels in the total transaction fees. The price of the leading nonfungible token collections on the cryptocurrency plummeted, while the activity in decentralized finance stalled due to minimum yields. However, it is expected that the downside could be limited, with the demand for liquid staking derivatives growing, and rising faster than the investors are moving towards selling. Although the primary use cases on Ethereum on DeFi activity and NFT trading went through a downturn in June, the narrative of LSD grows.
The staking deposits of Ether have increased significantly after the upgrade in Shanghai in April, as the confidence increased after multiple redemptions. Among most of the LSD platforms, Lido did lead the sector- followed by Frax and Rocket Pool. Glassnode has also reported that the network hasn’t seen an appreciable influx of new holders. Currently, the total supply of the cryptocurrency is staked with validators when compared to around 40% for most other proof-of-stake blockchains like Cosmos, Solana, and Avalanche- indicating room for growth.
