Lido (LDO), the liquid staking protocol for the ethereum (eth) and Polygon (MATIC) blockchains, has seen a significant price increase in the past 24 hours following the long-awaited approval of ethereum spot ETF applications by the US Securities and Exchange Commission (SEC) on Thursday.
The protocol's native token, LDO, has successfully reclaimed the $2.30 level and is looking to break out of its month-long downtrend structure that has been in place since market correction in April.
Will LSD Sector Skyrocket With ethereum ETF Approval?
As ethereum-etfs/” target=”_blank” rel=”nofollow”>reported According to our sister website, Bitcoinist, the SEC's approval of ethereum ETFs was detailed in an official filing, highlighting that the proposals comply with the provisions of the Exchange Act and relevant regulations governing stock exchanges. national.
The Commission has determined that proposals from notable entities such as BlackRock, Grayscale, Bitwise, VanEck, Ark Invest/21Shares, Invesco Galaxy, Fidelity and Franklin Templeton meet requirements to prevent fraud and manipulation, protect investors and safeguard the public interest.
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crypto analyst Daan crypto Trades, commenting on the approval of the ethereum ETF on x (formerly twitter), x.com/DaanCrypto/status/1794029338133712916″ target=”_blank” rel=”nofollow”>he pointed that the approval of new index funds has led to two sectors emerging as clear winners.
One of these sectors is Liquid betting derivatives (LSD), with Lido at the helm. Lido provides staking support for the ethereum blockchain without the need to lock tokens or maintain infrastructure, allowing participants to participate in on-chain activities such as lending and farming.
Key levels to consider in Lido
During the early hours of Friday, LDO reached a high of $2.49, but has since retreated to its current trading price of $2.35. Large investors are interested in the token, such as Spot On Chain x.com/spotonchain/status/1793901176163025034″ target=”_blank” rel=”nofollow”>data reveals that six new wallets/whales withdrew 4.3 million LDO ($9.59 million) from the Binance crypto exchange in the last 24 hours.
This indicates growing interest in holding the token, as sentiment suggests a possible rise in price parallel to ethereum once the newly approved index funds for the second-largest cryptocurrency enter the market in the coming months.
Additionally, CoinGecko data shows that Lido has experienced a trading volume of $350 million in the last 24 hours, which is an increase of 78.60% compared to Thursday. However, the token is still 68% below its all-time high (ATH) of $7.30, reached during the 2021 bull market.
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Looking ahead, bullish investors should closely watch the next resistance level on the LDO/USD daily chart, located at $2.55. Exceeding this level is crucial to breaking the downtrend structure That has persisted over the past month, which could lead to further tests of $2.70 and $2.90.
On the contrary, the $2.21 zone serves as an important reference point. support levell, as it acted as a strong barrier to Lido during the last week and a half before the escape.
Featured image from Shutterstock, chart from TradingView.com
