Ether (ETH) climbed to $1,950 on Tuesday for the first time in seven weeks, resulting in $62 million worth of liquidations among leveraged bearish positions. This marks a 29% gain from its recent low of $1,500 on June 26, mirroring a broader shift toward risk-on sentiment that also sent Bitcoin (BTC) above $66,500. With this upward momentum, market participants are watching closely to see if ETH can break through the $2,100 threshold.
Equities rally and tech earnings drive optimism
Major gains across the US stock market on Tuesday helped ease concerns about overheated valuations following a strong rally in artificial intelligence-linked stocks. Traders are increasingly optimistic about the upcoming wave of corporate earnings, particularly after 3M Company reported earnings results on Tuesday morning.
Alphabet, the parent company of Google, is also set to release its quarterly results on Wednesday once the markets close. Analysts are looking for 64% growth in the company’s cloud services, driven by robust investment in artificial intelligence. Positive earnings could boost investor confidence and provide fresh impetus to the cryptocurrency market. Some see a strong tech performance as key in helping push total crypto market capitalization back above the $2 trillion mark.
Ethereum’s onchain metrics reveal stagnant demand
Despite the recent increase in price, Ethereum’s onchain metrics remain weak. Data show that demand for blockchain processing has not bounced back to levels recorded six months ago. The decline correlates with decreased interest in memecoins and utility tokens, leading to significant losses in prominent projects such as Ethena (ENA), Mantle (MNT), and Arbitrum (ARB), each down over 50% year-to-date.
Weekly revenue generated by Ethereum decentralized applications (DApps) dropped to $9.8 million, the lowest level since September 2024. One of the best performers, Sky (previously known as MakerDAO), earned $3.2 million, while Chainlink brought in $1.2 million in the same period. Overall, decentralized exchange (DEX) volumes fell to $7.2 billion weekly, highlighting ongoing trader caution.
| Metric | Current Value | 6 Months Ago |
|---|---|---|
| DApps Weekly Revenue | $9.8 million | Higher |
| DEX Weekly Volume | $7.2 billion | Higher |
| % of ETH Staked | 34% | ~27% |
Ethereum’s onchain stagnation is also reflected in subdued derivatives activity.
Derivatives data and staking trends
The annualized funding rate for ETH perpetual futures has struggled to stay within the neutral 6% to 12% range over the past month. However, this marks an improvement from the negative rates seen in late June, which indicated strong bearish pressure.
Growing enthusiasm for Ethereum staking has contributed to a shift in trader sentiment. Data from Staking Rewards show that 34% of the total ETH supply is currently staked, up from 33% just one month ago. Bitmine Immersion, a company led by Tom Lee, has accumulated 156,719 ETH in the past month and now holds 4.8% of the available supply.
Analysts believe that increased staking reduces sell pressure, as more ETH is locked in staking contracts and less is available for trading. Despite these positive signals, ETH remains 61% below its all-time high from August 2025, which has left traders cautious about the potential for a sustained rally.
Ether’s ability to reach and hold the $2,100 mark may hinge on a further reduction in overall risk aversion, especially as markets await Google’s revenue guidance on Wednesday evening.
Recent Ethereum price gains have not been matched by a recovery in onchain activity, with DApp revenue and DEX volumes reaching multi-month lows even as staking participation sets new records.
Mini dictionary: Bitmine Immersion — a digital asset infrastructure company led by financial analyst Tom Lee, specializing in large-scale cryptocurrency mining and staking management.
