Matrixport: 3 Factors Supporting the Price of Crypto ETH

The price of Ethereum (ETH) has recently shown surprising resilience, causing considerable confusion for on-chain analysts. Although activity metrics like on-chain gas consumption have been continuously declining and network "heat" has not shown clear signs of recovery, the price of ETH has not corrected and has even continued to rise steadily. In its latest report, crypto financial services platform Matrixport offers an explanation for this paradox.

Matrixport argues that the current price trend is not merely due to market inertia but is being driven by a resonance of incredibly strong structural and fundamental factors.

1. Institutional Accumulation and the "Digital Gold" Role The first factor is the quiet and continuous addition of ETH to the treasuries of various institutions. This action not only creates stable buying pressure on the market but also continues to reinforce Ethereum's position as a form of "digital gold" within the asset allocation frameworks of large investors. This type of buying is strategic and long-term, and is less affected by short-term volatility.

2. Stablecoins: The Non-Stop "On-Chain Cash Engine" The second factor is the relentlessly vibrant activity of stablecoins on the Ethereum network. Even if general user activity declines, Ethereum remains the primary settlement layer for billions of dollars in daily stablecoin transactions. Each of these transactions consumes ETH for gas fees, creating an organic and continuous demand for the ETH token. Matrixport likens this to an "on-chain cash engine" that constantly injects liquidity and creates real utility demand for the ecosystem.

3. Tailwinds from Policy and Regulation Finally, recent progress on crypto-related legislation in the United States is providing a positive policy benefit for Ethereum in the medium to long term. Although the legislative process is lengthy, signals of a clearer legal framework for stablecoins and digital assets are helping to solidify Ethereum's compliant and legitimate status in the eyes of institutional investors. This de-risks the asset class and encourages stronger participation in the ecosystem.

Combined with the seasonal strength often seen in July, Matrixport concludes that Ethereum's current price structure is supported by a solid foundation. For traders holding long positions, the report indicates that the $2,500 level remains a key technical support level to watch.