– Ethereum (ETH) has been struggling to break through the $2,000 resistance level.
– While Bitcoin (BTC) saw significant gains in June, ETH only experienced a modest increase.
– The Ethereum network has seen a decline in activity, with lower transaction fees and a drop in NFT and DeFi activity.
– However, the demand for liquid staking derivatives (LSD) like Lido’s stETH is growing, which could prevent a sharper sell-off.
– Deposits to staking contracts have been higher than exchange inflows, indicating that more ETH is being moved towards staking than selling.
– Currently, 20% of Ether’s total supply is staked, leaving room for growth compared to other proof-of-stake blockchains.
– LSD derivatives offer a base rate of 4% with the opportunity for additional yields in DeFi applications.
– The ETH price analysis suggests two possible paths: finding support at $1,790 or dropping towards the long-term support level of $1,700.
– The ETH/BTC pair also indicates potential downside towards the 200-day moving average and long-term support level.
– The LSD narrative with higher yields than DeFi provides a cushion for any future downside in ETH.
– This article does not provide investment advice and readers should conduct their own research.