For the past 16 days, the price of Ether has been stuck below $1,920, and data indicates that this situation is unlikely to change soon. The bearish trend is supported by three important indicators, but the data is unable to pinpoint an immediate price breakout catalyst. According to Jamie Dimon, CEO of JPMorgan Chase, it is impossible to predict how the Federal Reserve will conduct its monetary policy, and the uncertainty surrounding the Joe Biden administration’s and the U.S. Congress’ standoff over the nation’s debt ceiling is most likely to blame for the worsening sentiment among institutional investors towards cryptocurrencies. However, there is a caveat. Total Ethereum deposits are stable.
The network’s total value locked (TVL), which was stable at 15.1 million ETH compared to four weeks earlier, is getting close to its lowest point since August 2020. The DEX market share of the Ethereum network sharply decreased on May 21 from a peak of 75.5% to 22.3%. The biggest gainer was BNB Smart Chain, which increased from 5.6% to 61.1%. The top 12 DApps operating on the Ethereum network saw an 11% decline in active addresses over the past 30 days, which may have been caused by investor dissatisfaction with the high transaction costs. Since there is no impending catalyst to support a sustained rally above $1,920 in the near term, professional ether traders have shied away from leveraged long positions for the past four weeks.
