#Etherum ETH/USD has been doing really well lately. In the last 24 hours, it has gone up 3.5% and is already above the psychologically important $2,700 mark. The second-largest cryptocurrency by market size is currently trading at significant resistance levels that could change its path to the important $3,000 barrier.
Ethereum Network Fundamentals Drive Sustained Growth
Ethereum’s main strength is still evident through excellent network metrics that set it apart from other cryptocurrencies. With a dominant 61% market share of total value locked (TVL), which is approximately $66.6 billion in deposits, the blockchain is still the most significant aspect of decentralized finance (DeFi). You can see how much better Ethereum is when you look at its layer-2 scaling solutions, which processed $70 billion in decentralized exchange (DEX) volumes in the last 30 days.
The network’s TVL grew by 6% in the last month. This was largely because protocols like Pendle, Ethena, and Spark grew a lot. During the same time, BNB Chain’s deposits went down by 6% and Solana’s deposits went down by 2%. This rise is considerably different from those.
Earlier this month, there were 17.4 million unique Ethereum addresses, which represents a staggering 70% increase since the start of Q2. The Base network is mostly to blame for this growth, as it accounts for around 73% of all new address activity.
Institutional Interest Solidifies Through Ether ETF Inflows
Ethereum is the only altcoin in the US that has approved spot exchange-traded funds (ETFs). This is another reason why it is so popular. There haven’t been any net withdrawals from these ETFs since May 16. Instead, they have brought in a net of $837 million. This consistent buying pressure from institutions, which is minor compared to the $4 billion average daily ETH volume on major exchanges, demonstrates that professional investors are getting more confident.
The supply situation also backs up positive confidence, since Ether’s exchange deposits have dropped to an all-time low of roughly 16.33 million ETH. At the same time, 28.3% of all Ether is still locked up in staking contracts. This makes the supply tighter, which means that prices change more when demand is high.
ETH/USD Technical Analysis Points to Critical Breakout Zone
From a technical point of view, Ethereum’s largest test is at the $2,800 resistance level, which is also the 200-day moving average and the highs of the weekly range. This sector has stopped price increases multiple times, and Ethereum has tried to break above this level five times in the last few weeks.
The current structure shows that ETH is following a multi-day rising triangle pattern, which is backed up by all of the important moving averages. The 50 SMA ($2,558), the 100 SMA ($2,571), and the 200 SMA ($2,535) are now strong support levels below the current price.
The options market data demonstrates that certain expert traders are in very interesting situations. Since the beginning of April, open interest in ETH options has gone up from $6.3 billion to $8.3 billion. Call options account for 63% of all positions. The majority of put options, 92%, are set at $2,700 or less. These options will be useless if ETH stays at its current price until the monthly expiration on June 27.
Leveraged Positions Create Volatility Potential
The futures market presents a double-edged scenario with open interest reaching a record $40 billion, indicating heavy leverage across the market. Liquidation data shows approximately $2 billion in long positions at risk below $2,600, while $1.8 billion in short positions face liquidation above $2,900. This balanced positioning suggests significant volatility potential in either direction.
