ETH Surges Past $1,900 Barrier; Will Bulls Target $2,100 Next?
Despite onchain challenges facing Ether's current rally, increasing staking activity and upcoming Google financial results may fuel momentum toward the $2,100 level.
Key takeaways:
- Even with ETH price appreciation, diminished onchain metrics and reduced DEX trading volumes indicate trader hesitation.
- Ethereum staking reaches unprecedented 34% level, decreasing selling pressure, though continued gains require outside market forces.
On Tuesday, Ether (ETH) reached the $1,950 level for the initial time in a seven-week period, causing $62 million worth of liquidations among leveraged short positions. This movement represented a 29% increase from the June 26 bottom at $1,500 and corresponded with the wider risk-on sentiment that propelled Bitcoin (BTC) beyond $66,500. Will ETH manage to break through toward $2,100?
The price action in Ether primarily mirrored the general cryptocurrency market direction, which experienced positive momentum throughout July. Gains in US equities on Tuesday contributed to alleviating investor concerns regarding elevated valuations following the artificial intelligence sector's stock surge. Market participants anticipate robust corporate earnings following 3M Company (MMM US) quarterly results released Tuesday morning.
Alphabet, which owns Google, will announce quarterly financial results on Wednesday following the close of US equity markets. Market watchers anticipate 64% revenue expansion in cloud services driven by substantial AI infrastructure spending. Positive earnings could rejuvenate market sentiment and propel the cryptocurrency market beyond the $2 trillion aggregate market capitalization threshold.
Weak Ethereum onchain metrics and muted ETH derivatives persist
Notwithstanding the recent price appreciation in ETH, onchain indicators for Ethereum demonstrate stagnation. Blockchain processing demand has failed to return to levels observed half a year ago, in part due to diminished trader enthusiasm for memecoins and utility tokens. Several of Ethereum's leading projects experienced year-to-date declines exceeding 50%, such as Ethena (ENA), Mantle (MNT) and Arbitrum (ARB).
Ethereum's decentralized applications (DApps) generated weekly revenue that declined to the weakest point since September 2024, reaching $9.8 million. The top performers include Sky (previously known as MakerDAO) with $3.2 million in weekly revenue and Chainlink, generating $1.2 million during the identical timeframe. Collectively, decentralized exchange (DEX) trading volumes decreased to $7.2 billion weekly.
The lackluster onchain performance for Ethereum corresponds with the muted sentiment visible in derivatives trading.
Throughout the previous month, the annualized funding rate for ETH perpetual futures has found it difficult to stay inside the neutral 6%-12% corridor. However, market sentiment has shown improvement compared to the negative rates observed during late June, which indicated substantial bearish positioning. Growing participation in Ethereum staking has probably enhanced trader optimism for price appreciation and diminished downside exposure.
Based on Staking Rewards information, an all-time high of 34% of total ETH supply is currently staked, increasing from 33% recorded one month prior. Market analysts anticipate decreased selling pressure given that long-term holders continue accumulating supply, notably Tom Lee's Bitmine Immersion (BMNR US), which acquired 156,719 ETH during the past month. This entity now holds 4.8% of available supply.
The ETH price remains 61% beneath the all-time high established in August 2025, offering context for the absence of bullish conviction in derivatives trading. The underwhelming on-chain performance and half-year bearish trend have made traders doubtful regarding durable upward momentum.
Whether Ether can reach $2,100 probably hinges on diminished risk aversion throughout financial markets, making Google's revenue projections on Wednesday particularly significant.