{"id":5655,"date":"2026-07-21T20:42:12","date_gmt":"2026-07-21T20:42:12","guid":{"rendered":"https:\/\/nile1.com\/en\/?p=5655"},"modified":"2026-07-21T21:29:47","modified_gmt":"2026-07-21T21:29:47","slug":"ether-rebounds-to-1950-as-record-staking-supply-limits-sell-pressure","status":"publish","type":"post","link":"https:\/\/nile1.com\/en\/2026\/07\/21\/ether-rebounds-to-1950-as-record-staking-supply-limits-sell-pressure\/","title":{"rendered":"Ether Rebounds to $1,950 as Record Staking Supply Limits Sell Pressure"},"content":{"rendered":"

Ether<\/a> (ETH) rallied to test the $1,950 threshold on Tuesday, marking its highest price point in nearly two months and triggering a massive wave of liquidations for bearish traders. The sudden upward movement forced the closure of $62 million in leveraged short positions, capitalizing on a broader market recovery that saw Bitcoin (BTC) climb past $66,500. This latest surge represents a 29% recovery from Ether’s local low of $1,500 recorded on June 26.<\/p>\n

The upward momentum in the cryptocurrency market coincided with a positive shift on Wall Street. Investor sentiment was bolstered by strong corporate earnings, including a favorable quarterly report from 3M Company<\/a>, which helped ease anxieties surrounding stretched stock valuations. Market participants are now closely watching tech giants, with Google’s parent company, Alphabet<\/a>, scheduled to release its financial results. Analysts anticipate a 64% growth in Alphabet’s cloud services revenue, driven by heavy investments in artificial intelligence. A strong performance from the tech sector could provide the necessary tailwinds to push the total cryptocurrency market capitalization beyond the $2 trillion milestone.<\/p>\n

However, Ethereum’s impressive price action stands in stark contrast to its underlying network metrics. Onchain data indicates a persistent stagnation in network utilization, with demand for transaction processing failing to recover to levels observed six months ago. This decline is largely attributed to a waning interest in speculative assets like memecoins and utility tokens. Several high-profile projects within the Ethereum ecosystem, including Ethena (ENA), Mantle (MNT), and Arbitrum (ARB), have suffered steep valuation losses, with their token prices dropping by 50% or more since the start of the year.<\/p>\n

According to data compiled by DefiLlama<\/a>, weekly revenue for Ethereum-based decentralized applications<\/a> (DApps) plummeted to $9.8 million, marking its lowest level since September 2024. Among the few resilient protocols, Sky\u2014formerly known as MakerDAO\u2014generated $3.2 million in weekly revenue, while the decentralized oracle network Chainlink<\/a> brought in $1.2 million. Concurrently, weekly trading volumes across decentralized exchanges (DEXs) fell to $7.2 billion, highlighting a broader slowdown in decentralized finance (DeFi) activity.<\/p>\n

This fundamental weakness is reflected in the derivatives market, where professional traders remain highly cautious. The annualized funding rate for Ether perpetual futures<\/a> has consistently struggled to maintain a position within the typical neutral threshold of 6% to 12% over the past month. While this represents an improvement from the negative funding rates seen in late June\u2014which indicated dominant bearish sentiment\u2014it suggests that leverage-backed buyers are still hesitant to commit to a sustained upward trend.<\/p>\n

Despite these headwinds, structural changes in supply dynamics are providing a strong floor for Ether’s valuation. Data from Staking Rewards<\/a> reveals that a record 34% of the total circulating Ether supply is now locked in staking contracts, up from 33% just a month ago. This massive lock-up of capital significantly reduces immediate sell pressure on open exchanges. Institutional accumulation has also played a role; Bitmine Immersion (BMNR) acquired an additional 156,719 ETH over the past month, bringing its total holdings to 4.8% of the available supply.<\/p>\n

While these supply-side dynamics offer long-term support, Ether remains 61% below its historic peak. Without a substantial revival in onchain transaction volume and DApp engagement, analysts suggest that further gains toward the $2,100 level will likely depend on external macroeconomic catalysts and continued risk-on appetite in traditional financial markets.<\/p>\n

\n

Read also:<\/h3>\n