The Ether price has stagnated between $1,800 and $1,900 since July 21, prompting uncertainty. Notable developments, such as PayPal’s stablecoin introduction and surging Ether-based ETF applications, hold potential for a reversal but face challenges.

Ethereum network applications’ total deposits in ETH. Source: DefiLlama

PayPal’s foray into cryptocurrencies signals Ethereum’s mainstream adoption possibility. Yet, concerns arise about centralization and asset control. Meanwhile, the surge in Ether ETF applications mirrors the trend for Bitcoin ETFs, but regulatory hurdles remain.

Ethereum’s DApp Activity Decline:

High gas fees hinder Ethereum’s DApps, leading to decreased deposits and active users. Total value locked (TVL) dwindled to a three-year low, with deposits dropping from 14.75 million to 12.9 million. Active DApp addresses have fallen by 25%, possibly reflecting dissatisfaction with transaction costs.

Ethereum’s 30-day DApp activity. Source: DappRadar

Ether quarterly futures show balanced demand from bulls and bears, with a 5% premium, suggesting equilibrium. Professional traders have maintained a neutral-to-bearish stance since July 16, indicating cautious optimism.

Challenges and Competition Ahead:

While bullish prospects arise from ETF potential and PayPal’s stablecoin, Ethereum faces competition from rival platforms. The launch of Coinbase’s Base network further adds complexity, challenging Ether’s price surge. Amid these dynamics, the $1,800 support level’s resilience remains uncertain.