Ethereum (ETH) remains above $1,500, buoyed by Panama City’s acceptance of crypto payments. Technical analysis indicates a potential accumulation phase near the $1,525 realised price support. However, its transaction fees are at five-year lows, attracting scrutiny against competitors. Institutional interest shows a preference for Ethereum ETFs, while macroeconomic uncertainties continue to influence trading behaviours.
Ethereum (ETH) is presently trading slightly above the $1,500 threshold, demonstrating stability. This steadiness coincides with Panama City’s recent decision to accept ETH, alongside Bitcoin, for public service payments. Technical analysis suggests that ETH is nearing an important accumulation phase, historically linked to potential price rebounds.
The Mayor of Panama City, Mayer Mizrachi, recently announced that the city will begin accepting Bitcoin, Ethereum, and stablecoins for various public services such as tax payments and permits. This move marks a significant step towards cryptocurrency acceptance in the region, supported by infrastructure collaborations with local banks which will facilitate conversions to fiat currency.
In contrast, Ethereum’s core value proposition has been questioned post-Dencun update, as users shift towards less expensive Layer-2 solutions. Current average transaction fees have plummeted to $0.168, the lowest in five years, raising concerns about Ethereum’s competitiveness against faster alternatives like Solana and BNB Chain. Despite this, such low fees historically precede market recoveries, hinting at a possible resurgence for ETH.
Technical analysis indicates that Ethereum is nearing its realised price level around $1,525, historically a strong support point. Past major bull runs for ETH have often commenced when the price approached or fell below this level, suggesting a potential accumulation phase ahead.
The technical outlook for ETH appears mixed; the cryptocurrency has fallen below its 20-day moving average and remains under the 200-day average. The Relative Strength Index (RSI) indicates weak momentum, hovering just below 40. While there is reduced volatility as reflected by the Bollinger Bands, a significant price movement may be on the horizon, with supports at $1,450–$1,550 and resistances at $1,670 and around $1,930.
Recent institutional investment patterns show family offices have a stronger preference for Ethereum ETFs over Bitcoin ETFs, allocating approximately 0.62% to Ethereum compared to Bitcoin’s 0.13%. However, Bitcoin still dominates overall institutional assets under management (AUM), with hedge funds leading in Bitcoin ETP ownership, while Ethereum ownership remains more evenly distributed among different investor types.
Macroeconomic factors, particularly concerns about Federal Reserve policies and global trade dynamics, continue to influence Ethereum’s price fluctuations. Traders are particularly cautious, often delaying decisions until clearer economic indicators emerge. Attention is directed towards Federal Reserve Chair Jerome Powell’s upcoming remarks, as they may hint at future economic conditions affecting cryptographic assets.
Ethereum holds a total value locked (TVL) of $46.8 billion, maintaining its position as the leading DeFi platform, far surpassing Solana and BNB Chain. The upcoming Pectra upgrade could potentially address some ongoing challenges faced by Ethereum, driving network improvements. As traders evaluate these technical indicators, the $1,900 level will be monitored closely as a significant control point in the coming weeks.
