{"id":12718,"date":"2022-08-04T00:28:11","date_gmt":"2022-08-04T00:28:11","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/3-key-ether-derivatives-metrics-suggest-1600-eth-support-lacks-strength\/"},"modified":"2022-08-04T00:28:12","modified_gmt":"2022-08-04T00:28:12","slug":"3-key-ether-derivatives-metrics-suggest-1600-eth-support-lacks-strength","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/3-key-ether-derivatives-metrics-suggest-1600-eth-support-lacks-strength\/","title":{"rendered":"3 key Ether derivatives metrics suggest $1,600 ETH support lacks strength"},"content":{"rendered":"
Ether (ETH) price is up 60% since May 3, outperforming leading cryptocurrency Bitcoin (BTC) by 32% over that span. However, evidence suggests the current $1,600 support lacks strength as network use and smart contract deposit metrics weakened. Moreover, ETH derivatives show increasing sell pressure from margin traders.<\/p>\n
The positive price move was primarily driven by growing certainty of the Merge, which is Ethereum’s\u00a0transition to a proof-of-stake (PoS) consensus network. During the Ethereum core developers conference call on July 14, developer Tim Beiko proposed Sept. 19 as the tentative target date for the Merge. In addition, analysts expect the new supply of ETH to be reduced by up to 90% after the network’s monetary policy change, thus creating a bullish catalyst.<\/p>\n
Ethereum’s total value locked (TVL) has vastly benefited from Terra’s ecosystem collapse in mid-May. Investors shifted their decentralized finance (DeFi) deposits to the Ethereum network thanks to its robust security and battle-tested applications, including MakerDAO (MKR) \u2014 the project behind the DAI stablecoin.<\/p>\n