Ethereum prices are still looking to collect the $1,900 mark.
Defillama data shows that liquidity and investor participation declined, and investor participation declined, down from $63 billion in January to $44 billion in February. Stablecoin inflows slowed, indicating slow capital reversal to the Ethereum (ETH) protocol.
The data also shows that decentralized exchange volumes have declined, down from $92 billion in December to $82 billion in February. Other chains like High Lipids (High Lipids) and Solana (SOL) suffered from futures trading at Ethereum, as they registered an expanding permanent futures trading volume, down from $31 billion in December in February to $18 billion.
Ethereum’s revenues were a huge hit, down from $193 million in December to just $26 million in February. A sharp decline was caused by lower transaction fees and lower network activity.
You might like it too: SEC decides to Greyscale XRP ETF, postponed Franklin Templeton joins applicants
Additionally, according to SoSovalue data, Spot Ether ETF has been out for four consecutive weeks, totaling $176 million over the past month. This trend indicates a decline in institutional demand for Ethereum.
Ethereum is currently trading at $1,876 and is struggling to maintain its critical support level of $1,875. ETH consistently falls below its 50-day moving average of $2,282.50, so the daily chart shows a clear downward trend, strengthening its bearish momentum.
Ethereum Technical Analysis. Credit: crypto.news
Bollinger bands show higher volatility. Ethereum holds the bottom band, suggesting it has been oversold. At 34.51, the relative strength index is close to the overselling threshold of 30, indicating low purchase pressure, but the possibility of a relief rally should demand an increase.
Low trading volumes indicate inadequate market participation. ETH can move to $1,800 if it falls below $1,875. The reversal faces resistance at $2,282. Ethereum must regain its 50-day moving average to see bullish shifts, but price movements are still under pressure.
One important development to note is promoting the inclusion of staking in ether ETFs. Cboe BZX has filed a request with US regulators to enable staking of Fidelity’s Ether ETFs in accordance with a similar request from February’s 21 shares. If approved, investors can earn around 3.3% to secure compensation. This could attract more institutional benefits.
read more: Binance’s decline in BTC whale ratio could indicate market rebound, analysts say
