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Why the Ether price remains below $1,900: 3 key factors

Why the Ether price remains below $1,900: 3 key factors

PayPal’s recent announcement of an Ethereum-based stablecoin and the surge in Ether ETF applications are seen as potential catalysts for a price trend reversal. However, the current lack of volatility in Ether’s price has left investors uncertain and skeptical.

The launch of PayPal’s stablecoin could be a significant step towards mainstream adoption for Ethereum, but it also raises concerns about centralization and loss of control over personal assets.

The United States Securities and Exchange Commission has seen a rise in applications for Ether ETFs, following a trend of major asset management firms seeking to establish Bitcoin ETFs.

The Ethereum network is facing challenges due to high gas fees, which have limited the demand for decentralized apps (DApps). This has resulted in a decline in the total value locked (TVL) of deposits on the network.

The number of active addresses using DApps has also decreased, indicating dissatisfaction with the high transaction costs on the Ethereum network.

Examining Ether derivatives can provide insights into whether the $1,800 level can serve as a reliable support level based on investor positioning.

Ether futures contracts currently trade at a slight premium to spot markets, indicating a state of equilibrium between leveraged long and short positions.

The unveiling of Coinbase’s Base network could pose a challenge for Ether’s price to surpass the $1,900 mark, as it introduces competition from other smart contract platforms.

In summary:

– PayPal’s stablecoin and Ether ETF applications are seen as potential catalysts for a price trend reversal.

– The lack of volatility in Ether’s price has left investors uncertain.

– High gas fees have limited the demand for DApps and resulted in a decline in TVL on the Ethereum network.

– The number of active addresses using DApps has also decreased.

– Ether futures contracts currently trade at a slight premium, indicating equilibrium between long and short positions.

– The unveiling of Coinbase’s Base network introduces competition for Ethereum.

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