ETH Struggles Below $1,700, APE Pushes Towards $7.50, AAVE Dips Under $100

ETH Struggles Below $1,700, APE Pushes Towards $7.50, AAVE Dips Under $100

Ethereum (ETH)

ETH, the native token of the Ethereum blockchain and the second most valuable cryptocurrency by market cap, last traded flat on Monday at $1,680, with some profit taking ahead of a busy week for events. at macro risk preventing the cryptocurrency from challenging last week’s highs near $1,800 per token.

Technicians pointed out that Ethereum is currently struggling to break above a key long-term resistance zone just above $1,700. If the cryptocurrency cannot push above these levels, it could take a bad retracement lower, some argued. Likewise, if ETH can convincingly push back above last week’s highs near $1,800, then it stands a good chance of testing late May highs in the $2,000 area. per token.

ETH/USD is struggling at a resistance zone of $1,700. Source: FX Empire

Ether overthrows Bitcoin in the options market for the first time

In a bullish sign for ETH, the total dollar value of all Ether options contracts currently open on the world’s largest crypto derivatives exchange, Deribit, recently exceeded the total dollar value of all Bitcoin options. On Monday, the so-called “open interest” (meaning the dollar value of open options contracts) for Ethereum options was $5.7 billion, compared to $4.3 billion for Bitcoin. .

Analysts called the development “historic,” with Ethereum never having seen higher open interest than Bitcoin. Some have claimed this could represent a buildup of bullish bets on the cryptocurrency with its “merger” to Ethereum 2.0 (where it transitions from proof-of-work to proof-of-state) in September.

BofA Warns Ethereum Needs Scalability Improvements to Succeed

Without scalability improvements, Ethereum will struggle to maintain its position as the dominant smart-contract-enabled blockchain, Bank of America explained in a research report last week. The bank noted that newer blockchains that already use a Proof-of-Stake consensus mechanism and have greater scalability have recently taken market share from Ethereum. They cite Binance Smart Chain, Avalanche, and Solana as examples.

However, the bank noted that Ethereum’s move from Proof-of-Work to Proof-of-Stake seems imminent, which will be the first in a series of major updates for the blockchain, including the so- called “Surge,” which aims to improve Ethereum’s throughput (i.e. transaction processing speed) exponentially. Currently, Ethereum can only handle around 15 transactions per second (TPS), but the goal is to increase this to around 100,000.

ApeCoin (APE)

Apecoin bucks the trend on Monday which saw most other major cryptocurrencies decline amid profit taking, with its APE token up just over 5.5% on the day and more high of just over 3.0% in the past 24 hours, as per CoinMarketCap. APE/USD last changed hands just above $7.10 per token, just below Sunday’s multi-week highs in the $7.30 area.

Technicians are targeting a short-term test of the $7.50 area, which was a resistance zone turned support in late May. A break above here could open the door for a quick return to mid-May highs near $10.

APE/USD bulls expect further upside. Source: FX Empire

Aave (AAVE)

AAVE, the native token that powers the crypto borrowing/lending/liquidity platform of the Decentralized Finance (DeFi) protocol, is one of the worst performing cryptocurrencies in the top 50 by market capitalization. According to CoinMarketCap, AAVE is down nearly 6.0% in the past 24 hours, with AAVE/USD last changing hands at $98 per token, after retreating from multiple highs. weeks printed above $100 on weekends.

AAVE/USD has been rising for the past few weeks within the confines of an uptrend channel and therefore some technicians are targeting a test of the $115-$125 resistance zone in the coming weeks. Above that is the 200-day moving average just below $130 per token.

AAVE/USD struggled below $100, but continues to rise in the uptrend channel. Source: FX Empire

Aave will create a new algorithmic stablecoin GHO

Aave’s Decentralized Autonomous Organization (DAO) has just passed a proposal to create a new algorithmic stablecoin GHO. 99.99% of the 501,000 AAVE tokens that voted on the proposal voted in favour. In order to obtain GHO (the equivalent of a loan), users of the Aave protocol will have to deposit a guarantee according to a predefined ratio.

Once they have paid off their GHO or been liquidated due to a drop in the value of their collateral, Aave will burn the GHO. Given the failure of Terra’s UST stablecoin in May, many in the crypto space are skeptical of GHO’s ability to succeed. Under Aave’s proposal, however, GHO will be over-guaranteed. GHO will initially be available on the Ethereum mainnet.

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