Ethereum's drop is matched by a surge in DEX activity

The bear market hits right in the middle of a heatwave in the crypto industry. This drop may take much longer than analysts initially expected. For bitcoin, it’s a disaster, but it is not a big deal for seasoned investors. For Ethereum, however, the situation is unusual and raises questions about the network’s resilience. A philosophical question arises here with particular sharpness: can an asset be worth less while serving more?

Ethereum holds strong on its network while its price crumbles

Ethereum lost 21% in one month, a brutal drop that would place most assets in crisis territory. Yet, network indicators tell a completely different story about the protocol’s health. DEX volume jumped 36% during the drop. It rose from $0.9 billion to $1.3 billion between June 22 and 24.

Daily transactions on the Ethereum network remained strong around 2.7 million per day. Stablecoins stayed anchored near $158 billion, losing only 2% over the week. 

Actual activity did not collapse with the Ethereum price on financial markets. This dissonance creates a fascinating paradox for crypto market observers. 

” ETH/BTC is still in our long-term buy zone. “, points out CrediBULL Crypto on X. 

The market punishes Ethereum, but its utility remains intact for users.

The ETH whale war is dividing the crypto market

Major Ethereum market players are waging a silent war on decentralized exchanges. On one side, Lookonchain spotted a new wallet withdrawing 17,675 ETH from Binance, worth $28.58 million. 

On the other hand, Onchain Lens reported that a dormant whale sold 27,585 ETH for $44.84 million after seven years of complete inactivity. A trader was liquidated on a 25x long position, losing $1.9 million. He then opened a new equally risky position on the market. 

This whale war creates additional volatility in the crypto market and on Ethereum. Each camp has strong arguments to justify their position. Buyers bet on price recovery in the medium term. Sellers take their profits after years of patient waiting.

The technical levels that will decide Ethereum’s fate

Support at $1,551 separates a recovery led by whales from a fallback towards the June lows. Ethereum currently trades around $1,560, just above this critical level for traders. 

Resistance at $1,683 must be broken to consider a stronger rebound towards $1,724 and $1,765. 

The RSI remains low at 38.34, below the moving average of 38.79 indicating persistent weakness. Crypto Tony observes a possible triangle formation on the crypto market and Ethereum. 

” We see series of 3 waves from the lows, suggesting the formation of a triangle “, he highlighted. A consolidation of several weeks could precede a decisive move on Ethereum and crypto markets.

Key figures of the Ethereum market

• $1,560: ETH price at the time of writing;
• 21% drop in one month for Ethereum;
• 36% increase in DEX volume during the drop;
• 17,675 ETH withdrawn by a buying whale;
• 27,585 ETH sold by a dormant whale.

Ethereum resists on its network while its price faces pressure from current financial markets. Bitcoin disappoints by falling below $60,000, closely monitoring the 59,000 threshold before the US PCE. Ethereum could come out winning if the support holds firmly again today.