Ether Reaches Seven-Week High Amidst Stagnant On-Chain Activity
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Written by
Simonas Brazionis - Updated 2026-07-25 00:33:50
Ether (ETH) recently reached $1,950, its highest point in seven weeks, leading to $62 million in liquidations of leveraged bearish positions. This represented a 29% increase from its June 26 low of $1,500.
This upward trend coincided with a broader positive market sentiment that also saw Bitcoin (BTC) surpass $66,500. The price of Ether has largely mirrored the overall cryptocurrency market’s positive momentum, which began in July.
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Ethereum On-Chain Metrics Stagnate
Despite recent price increases for ETH, on-chain metrics for Ethereum indicate stagnation. Demand for blockchain processing has not returned to previous levels, partly due to diminished trader interest in memecoins and utility tokens. Several prominent Ethereum projects have experienced year-to-date losses of 50% or more, including Ethena (ENA), Mantle (MNT), and Arbitrum (ARB).
Weekly revenue for Ethereum's decentralized applications (DApps) declined to $9.8 million, the lowest since September 2024. Among the top performers were Sky (formerly MakerDAO) with $3.2 million in weekly revenue and Chainlink, which generated $1.2 million. Decentralized exchange (DEX) volumes also decreased to $7.2 billion per week.
Derivatives Markets and Staking Trends
The subdued on-chain data for Ethereum is reflected in the derivatives markets. The annualized funding rate on ETH perpetual futures has struggled to maintain the neutral 6%-12% range over the past month, although it has improved from the negative rates observed in late June, which indicated strong bearish demand.
An increasing interest in Ethereum staking has likely contributed to more optimistic price expectations among traders and reduced perceived downside risks. Data from Staking Rewards shows that 34% of the total ETH supply is now staked, an increase from 33% a month prior. This record-high staking percentage is expected to reduce selling pressure as long-term holders continue to accumulate supply. Bitmine Immersion (BMNR US) notably added 156,719 ETH in the last month, now controlling 4.8% of the available supply.
Future Outlook and Market Skepticism
Ether's current price remains 61% below its all-time high from August 2025, which may contribute to the lack of strong enthusiasm in derivatives markets. The soft on-chain metrics and a six-month bear market have fostered skepticism among traders regarding sustained upward movement.
The potential for ETH to reach $2,100 is likely contingent on a reduction in market-wide risk aversion, making Google's upcoming revenue guidance particularly significant. Gains in the US stock market contributed to easing investor concerns regarding valuations following a rally in artificial intelligence stocks.
