3 key Ether price metrics point to growing resistance at the $1,750 level

Ether’s price plunged 7% between June 14 and June 15, reaching its lowest level in three months and impacting investors’ view that the altcoin was en-route to turning $2,000 to support.

It is worth noting that the $1,620 bottom represents a $196 billion market capitalization for Ether (ETH), which is higher than PetroChina’s $186 billion and not far from chipmaker AMD’s $198 billion.

Being the 66th largest global tradable asset is no small feat, especially considering that the cryptocurrency is merely eight years old and does not return any kind of direct profit for the project’s maintenance. On the other hand, securities enjoy the benefits of corporate earnings and eventual government subsidies, so perhaps investors should be concerned by the recent price drop in Ether.

Ether price pressured, succumbs to regulation and lowered network activity

Regulatory pressure helped to subdue investors’ appetite for Ether as the Securities and Exchange Commission proposed a rule change regarding the definition of an exchange. Paul Grewal, chief legal officer of the Coinbase exchange, has pushed back against the proposed change, claiming that it violates the Administrative Procedure Act.

More concerningly, decentralized application (DApp) usage on the Ethereum network failed to gain momentum despite gas fees plummeting by 75%. The seven-day average transaction cost dropped to $4 on June 14, down from $16 one month prior. Meanwhile, DApp active addresses declined by 18% in the same period.

*The 30-day Ethereum DApp activity. Source: DappRadar*

Notice that the decline happened across the board, affecting decentralized finance, nonfungible token marketplaces, gaming and collectibles alike. Curiously, the total value locked (TVL), which measures the deposits locked in Ethereum’s smart contracts, declined by a mere 2% versus mid-May to 14.6 million ETH, according to DefiLlama.

To analyze the odds of Ether’s price breaking below the $1,650 support, one should check for a reduced ETH futures premium and increased costs for protectiv

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Author: Marcel Pechman

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