Ethereum (ETHUSD) bounced on Tuesday to end twelve days of weakness in the coin.
The ETHUSD price has slumped from recent highs to a low of $2,160 which was a low in February. That level needs to hold for the uptrend to remain possible.
Ethereum bulls had been celebrating since May after a surge from $1,800 to the highs above $2,800. The move was driven by staking records in the coin, where investors lock up their coins on the platform to earn a yield. Exchange traded fund inflows were also beneficial to the price of Ethereum.
Crypto prices continue to track the speculative aspect of tech stocks, which will support prices in the near term if the US stock market can find a bullish tone again.
It was a worrying weekend for the cryptocurrency market with geopolitical drama dragging Bitcoin below the $100,00 level. The world’s largest cryptocurrency by market cap has since bounced to $103k on Tuesday as investors hope for a rebound in share markets.
Nicolai Sondergaard at crypto research firm Nansen said that traders were on the sidelines.
“We also still have a lot of market uncertainty, whether it’s macro or war,” he said.
“These factors, combined with the fact that if we look at options data, the view is still somewhat neutral, we are still in a sort of wait-and-see stage.”
On June 17, the supply of ether staked on the chain reached a new all-time high of over 35 million, hinting that the supply is decreasing somewhat.
The data is still mixed on the potential next path for Ethereum as some long-held positions were getting out with the recent price gains. On-chain analytics platforms highlighted that the “Coin Years Destroyed” metric, which tracks long-held coins moving onto the blockchain, reached a six-month high. This was a sign that some investors had decided to take profit on some long-held coins.
When investors are happy to sit and wait on their holdings, it can encourage new buyers to get involved. For the near-term, crypto is showing some weakness and is at the mercy of geopolitical events.
