Ethereum Faces Uphill Battle as Staking Demand Drops and Prices Struggle To Hold Support

By: Isha Das

In recent times, Ethereum has been grappling with numerous challenges. Earlier this year, Ethereum staking witnessed increased interest, specifically with the rise of Lido Finance in the DeFi sector. However, it is now encountering issues, suspicions, and resentment. This decline is coinciding with a struggling Ethereum price that's finding it hard to hold key support levels.

Ethereum failed to initiate a fresh increase above $1,600 against the US dollar and is now struggling to stay above the $1,550 support zone. It extended its decline and tested the $1,550 support zone, now trading just below $1,580 and the 100-hourly Simple Moving Average. A bearish trend line forms resistance near $1,570 on the hourly chart of ETH/USD. The price could drop further if bulls can't hold the $1,550 support.

On the flip side, Ethereum could start a decent increase with a close above the $1,600 resistance zone. In this case, Ether could recover towards the $1,660 resistance and possibly pave the way towards $1,720. ETH failing to clear the $1,570 resistance might trigger more losses, with key supports sitting at $1,520 and $1,480. Declining below these supports might usher the price towards $1,420 level. Ethereum's current situation makes for a precarious market.