Is The Smart Contract King (Ethereum) Being Ignored?

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Over 30 days have passed, and Ethereum crypto is hovering between $2,200 and $2,800. Not just ETH, but it’s the entire crypto market that has slowed down. Despite some strong fundamental news popping up lately, the price remains unaffected. The technical factors, too, are leaving investors in a state of uncertainty.

However, a sign of hope has established as Bitcoin token experienced a short bull run a few days back after Elon Musk plans to bring the cryptocurrency back to business.

While Musk’s earlier tweet on pausing Bitcoin payment plunged the entire crypto market, the most recent tweet on the possibility of resuming Bitcoin payments affected only the price action of Bitcoin.

Usually, Bitcoin’s price trajectory is followed by Ethereum. But the correlation seems to have dropped in recent days. Bitcoin is getting back on track, closing in the positive every day, while Ethereum seems to struggle its way up.

Is Ethereum losing momentum, or other smart contracts are becoming a better choice? Let us get some updates on Ethereum crypto and try answering the above question.

Goldman Sachs to bring Ether Futures and Options to its clients

According to a report from Bloomberg, Goldman Sachs is planning to allow its clients to get exposure in the ETH futures and options segment.

The offerings should go live “in the coming months”, said Mathew McDermott, Goldman’s head of digital assets.

Crypto services that were put on hold by Goldman Sachs are now going to restart, seeing the interest growing among institutional investors and its own clients, for that matter. However, the core focus of the offerings will be on the derivative side of cryptocurrencies.

Goldman Sachs is one of the biggest Wall Street megabanks to actively participate in the crypto space. It has moved a large sum of capital to the crypto markets in recent days as well. For instance, Goldman Sachs brought in $15 million for the Coin Metrics funding round. It even led McDermott to join the data startup on the board of directors.

Without simply limiting to the top-gun cryptos, “We are looking at a number of different companies that fit into our strategic direction”, said McDermott to the Bloomberg publication.

A quarter of Ethereum Supply is Locked in Smart Contracts

Around 25% of all Ethereum cryptocurrency is now locked in Smart Contracts. The figure has made it fundamentally stronger with respect to Ethereum becoming a decentralized financial layer.

“The amount of ETH in smart contracts is now at a similar level to what it was during The DAO event (around 23% of all ETH).” – said Anthony Sassano, an industry observer and founder of ETHhub.

Comparing to the past, Sassano added that ETH that was worth $230 million when priced at $13, is now worth a whopping $63 billion with the current market price of $2,500.

In the above graph of % ETH locked in smart contracts, it is ascertained that the current value heading to the all-time highs. The spike that came in last year is when Ethereum got its feet wet into the DAO, raising $150 million for the first Decentralized Autonomous Organization launched on the Ethereum Blockchain.

Later, due to some vulnerabilities in the code base, the DAO was hacked. And to restore the stolen funds, the Ethereum blockchain was hard forked, leading to the creation of Ethereum Classic.

ETH 2.0 and Statistics

He also observed that over a million ETH is present in the Binance Smart Chain bridge contract. And most of the ETH tokens are locked up in the Beacon Chain deposit contract. As per the ETH 2.0 Launchpad, there is over 5.42 million Ether is staked on the blockchain.

If we were to consider its worth using the current prices, it would lead to a sum of $13.5 billion. Fun fact – the value represents 4.65% of the entire DeFi supply.

Based on the numbers, BelnCrypto reported that the fundamentals of Ethereum crypto are strong and have been strengthening against Bitcoin for a year.

Ethereum Price Action – The Calm Before the Storm

As other cryptos are making great progress in technology and price, Ethereum stood around the same levels.

While most altcoins are below the Support or at the top of the Resistance, Ethereum crypto is between the Support and Resistance. In fact, it has been ranging inside a bigger range.

That being said, the crypto has left it’s first higher low – maintaining grounds above the Support level. And currently, the buyers are fighting to breach above the mini-S&R, as shown in the below chart.

As a matter of fact, it is one of the few altcoins to not face the second dip that came in three days back.

All the factors are indeed showing bullish sentiment on Ethereum. Thus, given the fundamentals we just discussed and the price action in favour of the buyers at the moment, it looks like ETH is preparing to lift off very soon.

If you are planning to get into Ethereum considering the above factors, you can buy it right away from our credible list of Crytpo exchanges. Happy investing!

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