Ether has broken through the key resistance level of $1.9K for the first time in seven weeks, with bulls eyeing a push towards $2.1K as Google earnings and rising staking demand may provide momentum.
Ether recently broke past the critical $1,900 price point on Tuesday after testing it for the first time in nearly seven weeks, triggering significant liquidations from leveraged bearish positions worth approximately $62 million. This move comes as the broader crypto market shows signs of risk-on sentiment, with Bitcoin rallying above $66,500.
The rally was bolstered by positive market conditions and supportive on Wall Street, where US stocks saw gains following a period of concern over stretched valuations in AI-related sectors. With Ethereum's price tracking this overall trend, traders are looking for additional catalysts to push the asset towards $2,100.
Despite these recent gains, weak onchain activity indicates cautious trader sentiment. Weekly DEX volumes and decentralized application (DApp) revenues have dropped significantly, with only Sky and Chainlink showing resilience among top projects. Additionally, Ethereum's annualized funding rate on perpetual futures has struggled to remain neutral, reflecting ongoing bearish demand.
However, rising staking participation is providing some support for bulls. A record 34% of all ETH supply is now staked, with long-term holders like Bitmine Immersion adding substantial amounts over the past month. Analysts believe this could reduce sell pressure and contribute to upward momentum.
The path to $2,100 likely hinges on reduced risk aversion across markets, particularly as Google reports its earnings Wednesday after US stock market close. Strong corporate performance from tech giants like Alphabet may help restore confidence in the broader crypto ecosystem.
Traders should continue monitoring Ethereum's staking data and overall onchain metrics for signs of sustained interest. Additionally, key events such as Google’s quarterly results will be crucial in determining whether ETH can maintain its upward trajectory.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.