Key takeaways:
- Despite ETH price gains, tender network activity and low DEX volumes signal trader caution.
- Ethereum’s record 34% staking reduces selling pressure, but sustained growth requires external catalysts.
Ether (ETH) tested the $1,950 level for the first time in seven weeks on Tuesday, triggering the liquidation of $62 million in leveraged bearish positions. The move provided a 29% gain from the June 26 low of $1,500 and was in line with the broader risk-on sentiment that pushed Bitcoin (BTC) above $66,500. Can ETH exceed $2,100?
Total cryptocurrency market capitalization (left) vs. ETH/USD. Source: TradingView
The ether price largely followed the general trend in the cryptocurrency market, which achieved positive dynamics in July. Tuesday’s gains in the U.S. stock market helped ease investor concerns about inflated valuations following a rally in artificial intelligence stocks. Traders expect solid corporate earnings after 3M (MMM US) reported earnings on Tuesday morning.
Google parent Alphabet is expected to report quarterly results on Wednesday, after U.S. markets close. Investors expect a 64% enhance in cloud revenues due to ponderous investments in artificial intelligence. Sturdy gains could restore confidence and lend a hand push the cryptocurrency market beyond the $2 trillion mark in total capitalization.
Ethereum onchain metrics remain tender and ETH derivatives remain muted
Despite recent ETH price increases, Ethereum onchain metrics are showing stagnation. Demand for blockchain processing has not returned to the levels seen six months ago, partly because investors are showing less interest in memecoins and utility tokens. Some of Ethereum’s top projects have seen losses of 50% or more year-to-date, including Ethena (ENA), Mantle (MNT), and Arbitrum (ARB).
Weekly DEX volumes and revenues from DApps on the Ethereum network, USD. source: DefiLlama
Weekly revenue from Ethereum decentralized applications (DApps) fell to its lowest level since September 2024, reaching $9.8 million. The strongest performers included Sky (formerly MakerDAO), with weekly revenue of $3.2 million, and Chainlink, which earned $1.2 million during the same period. Overall, decentralized currency exchange (DEX) volume dropped to $7.2 billion per week.
Ethereum’s tender supply chain data reflects subdued sentiment in derivatives markets.
ETH perpetual futures annual funding rate. source: Laevitas
Over the past month, the annual funding rate for ETH perpetual futures has struggled to stay in the neutral 6-12% range. Still, sentiment improved from the negative interest rates seen in overdue June, reflecting sturdy bearish demand. The growing interest in staking in Ethereum has likely increased investor expectations for price gains and reduced downside risk.
Ethereum staking data. Source: StakingRewards
According to Staking Rewards data, a record 34% of the total ETH supply is currently staked, up from 33% a month earlier. Analysts expect reduced selling pressure as long-term holders continue to build up supply, including Tom Lee’s Bitmine Immersion (BMNR US), which added 156,719 ETH over the past month. The company currently controls 4.8% of the available supply.
ETH’s price is 61% below its all-time high in August 2025, which helps explain why bulls lack enthusiasm in derivatives markets. Supple on-chain metrics and a six-month bear market have left investors skeptical about sustained gains.
Ether’s path to $2,100 likely hinges on reduced risk aversion in markets, which makes Google’s earnings guidance on Wednesday particularly critical.
