Ethereum Nears Critical Realized Price Support as Panama City Embraces Crypto Payments
Ethereum (ETH) is currently trading above the $1,500 mark, showing little change in its price over the past 24 hours. This stability comes
Quick overview
- Ethereum (ETH) is trading above $1,500, showing stability as Panama City announces acceptance of ETH for public services.
- Technical analysis indicates ETH may be nearing a key accumulation phase, historically linked to price rebounds.
- Ethereum's transaction fees have dropped to five-year lows, raising concerns about its value proposition compared to cheaper competitors.
- Institutional interest in Ethereum ETFs is growing, with family offices showing a significantly larger allocation to Ethereum compared to Bitcoin.
Live ETH/USD Chart
Ethereum (ETH) is currently trading above the $1,500 mark, showing little change in its price over the past 24 hours. This stability comes as Panama City announces its acceptance of ETH for public services, while technical analysis suggests that the cryptocurrency might be nearing a key accumulation phase that could precede a price rebound.
Panama City Embraces Ethereum and Bitcoin for Public Services
Panama City said this week that it will start accepting Bitcoin, Ethereum, and stablecoins as payment for many public services including taxes, tickets, permits, and fees, in a major breakthrough for the acceptance of cryptocurrencies.
On Wednesday, Panama City Mayor Mayer Mizrachi disclosed that a proposal allowing local agencies to take bitcoin payments was approved by the council. First implemented will be Bitcoin, Ethereum, and stablecoins USDC and Tether (USDT).
“Prior governments sought to push a bill in the senate to make this possible, but we found a simple way to do it without new legislation,” Mizrachi said. To help these exchanges, the city has teamed with banks ready to accept digital assets and translate them into fiat money.
This action places Panama City in line with other jurisdictions accepting cryptocurrencies as payment options, including those of Switzerland, nations like El Salvador and the Central African Republic, which have acknowledged Bitcoin as official currency.
Layer-1 Value Capture Weakens Post-Dencun
After the Dencun update, Ethereum’s basic value proposition has come under questions. With users moving to less expensive Layer-2 solutions, scalability—which rose almost 16-fold with the arrival of blobs—has decreased Layer-1 charge receipts.
With average only $0.168 per transaction, Santiment’s research shows Ethereum fees have decreased to five-year lows. This suggests declining use and network congestion, so compromising ETH’s desirability in relation to quicker, cheaper competitors like Solana and BNB Chain.
From a contrarian standpoint, though, these low rates would suggest a possible comeback. Historically, fees less than $1 have sometimes come before price recovery. “The more the retail community leans away from an asset (especially one with still thriving development), the higher the likelihood of an ultimate surprise rebound with little resistance,” Santiment says.
ETH/USD Technical Analysis: ETH Approaching Realized Price Support
Analysis from CryptoQuant contributor abramchart indicates that Ethereum is presently trading close to its realized price level of roughly $1,525, a zone that has historically acted as a consistent indicator of deep-value accumulation.
“Every major bull run in ETH’s history has started when the price fell to or below this level,” the research states. This technical signal points to Ethereum perhaps starting a major accumulation phase before a notable comeback.
Technical Signals Remain Mixed
Ethereum’s technical future seems to be somewhat conflicting. ETH shows a serious downturn since it has dropped below its 20-day moving average and stays well below the 200-day moving average. Reflecting poor momentum but not quite oversold conditions, the Relative Strength Index (RSI) floats just under 40.
Although daily Bollinger Bands remain compressed, showing less volatility, a clear movement in either direction could be imminent. Should the down trend continue, ETH may find support in the $1,450–$1,550 region, with instantaneous resistance at $1,670 and stronger overhead pressure projected near $1,930.
According to past performance, Ethereum usually spends several months in consolidation following oversold levels before making its next major action. Analysts note that in the next months range-bound trading between $1,300 and $1,700 is likely.
Institutional Investment Shows Interesting Patterns
Relative preference for Ethereum ETFs over Bitcoin products is being shown by family offices and trusts. Bitwise data reveals that family offices allocate 0.62% of spot Ethereum ETP assets under management, compared to just 0.13% for spot Bitcoin ETPs, therefore reflecting an almost fivefold larger allocation share.
Still, Bitcoin rules in overall institutional AUM. With 36.97%, hedge funds share the most of Bitcoin ETP AUM; followed by investment advisers at 33.11%. By contrast, Ethereum ETP ownership is more fairly split among hedge funds (24.74%), investment advisers (29.79%), and brokerages (25.25%).
Ethereum Price Prediction: Macroeconomic Uncertainty Looms
A lot of Ethereum’s recent price movement could be related to more general macroeconomic uncertainty like worries about Federal Reserve policies and world trade conflicts. Traders seem especially sensitive to tariff and economic news; they often postpone ETH action until more clarity returns the global economic scene.
Federal Reserve Chair Jerome Powell’s address today at the Economic Club of Chicago will be attentively followed for hints on interest rates and economic circumstances, which can temporarily affect the value of cryptocurrencies.
With a total value locked (TVL) of $46.8 billion, Ethereum is still the biggest DeFi chain despite its recent difficulties; it is much ahead of rivals Solana and BNB Chain with TVLs of $6.8 and $5.2 respectively. Though others argue it may not solve all the basic issues Ethereum encounters, the forthcoming Pectra upgrade could have significant effects on the performance of the network.
While ETH negotiates these technical and fundamental crossroads, traders in the next weeks will closely monitor the $1,900 mark as a critical point of control.
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