Ethereum’s bid to breach the $2,000 threshold seems to be under considerable pressure due to subpar derivatives indicators, coupled with a decline in total value locked (TVL) and the utilization of decentralized applications (DApps) on its network. Ethereum’s price increase experienced a chokepoint at the $1,920 mark, following a 17.5% surge from June 15 to June 22. This restricted uptrend can be attributed to several elements, such as a downturn in the macroeconomic landscape, an evolving regulatory landscape for cryptocurrencies, and diminishing demand for Ethereum-based DApps.

Complications in the Macroeconomic Climate Impacting ETH Prices

A setback for Binance in a court case against the U.S. Securities and Exchange Commission (SEC), economic contraction warnings for the U.S. from HSBC Asset Management, and International Monetary Fund’s advice to central banks for maintaining high interest rates longer than anticipated have all cast a shadow on Ethereum’s performance.

Reduction in Ethereum Network Demand and Gas Fees

The utilization of DApps on Ethereum’s network struggled to gather traction as gas costs dipped by 60%. Notably, the average transaction expense over seven days dipped to $3.7 on June 26 from $9 four weeks earlier. DApp’s active addresses witnessed a 27% reduction over the same duration. Although some non-fungible token (NFT) platforms witnessed a rise in unique active wallets (UAW), the overall demand for Ethereum network remained underwhelming.

Insufficient Derivative Market Support for Ethereum Price Rally

Evaluating the derivatives markets provides insights into how pro traders are positioning for Ethereum’s next price move. The quarterly futures of Ether, favored by whales and arbitrage desks, usually carry a slight premium over the spot markets. This “contango” situation reflects a healthy market.

However, according to the futures premium or basis indicator, pro traders have been eschewing leveraged bullish positions. Despite a small improvement to 3%, the indicator remains a long way from the neutral 5% threshold.

When considering the Ethereum options markets, the 25% delta skew indicator reveals that the demand for options is balanced at the moment, suggesting that neither bullish nor bearish sentiments are particularly dominating.

Sub-$2,000 Resistance: A Tough Nut to Crack

Given the Ethereum derivatives metrics, dwindling TVL and DApps usage, bearish traders seem to have a strong position to maintain resistance below the $1,920 mark. The unfavorable macroeconomic conditions and regulatory news in the crypto space only strengthen this sentiment.

While this doesn’t necessarily suggest that Ethereum’s price will drop back to $1,750, it does underline the significant challenge that Ethereum bulls face in overcoming the $1,920 resistance level. As things stand, bearish traders appear to have the upper hand in defending this crucial price level in the near term.