Ethereum Price Outlook As ARK Invest Analyst Questions Ultra Bearish ETH Revenue Data

Ethereum (ETH) price is in focus after ARK Invest analyst Lorenzo Valente said that Robinhood Chain is ultra-bearish for Ethereum’s revenue after ETH received only $1,538 in revenue from Arbitrum.

The analyst’s outlook comes as Robinhood Chain emerges as the fifth-biggest chain by DEX volumes per DeFiLlama, with the growth coming after the network announced a 90-day gas subsidy to boost adoption.

Ethereum price is up by 0.36% today, July 14, to trade at $1,780 at the time of writing.

ARK Invest Analyst Warns Robinhood Chain is Cannibalizing Ethereum Revenues

Analyst Valente notes that Ethereum is barely getting any revenue share from Robinhood Chain despite the latter running on Ethereum’s layer-two network, Arbitrum.

In an X post, Valente said that Robinhood Chain has generated $816,000 in revenue since launching on July 1 amid buzz around Robinhood Chain tokens. 10% of this $816,000 has been paid to Arbitrum, while $1,538 has gone to Ethereum.

This revenue share suggests that Ethereum is only getting 0.15% of the revenue that Robinhood Chain is generating.

“If your thesis is ‘ETH is a revenue-generating asset,’ this is the ultra-bear case,” the analyst said.

Valente notes that “things need to change” so that Ethereum gets 15% of the revenue while Arbitrum and Robinhood get 10% and 75%, respectively.

But ConsenSys founder Joe Lubin has defended the low fees, saying that is what is attracting companies to build on Ethereum, and as this continues, it could boost the value of ETH.

Still, while Robinhood Chain coins are rallying because of the rapid growth of this chain since it launched on July 1, Ethereum price continues to struggle below resistance.

Ethereum Price Faces $1,840 Resistance as Bulls Eye 22% Rally

The price of Ethereum is facing resistance at $1,840. It has been rejected at this resistance for three straight days, suggesting that buyers are hesitating to buy at this price.

But the MACD line that has turned positive supports a bullish long-term Ethereum price forecast. The RSI reading of 55 also suggests that the momentum is favoring bulls.

If Ethereum closes above the resistance level of $1,840, it will be a breakout from a rising parallel channel. This will suggest that the uptrend that started on June 26 could continue.

Moving above $1,840 could also confirm that ETH has completed a double-bottom pattern, and the price could gain by 22% and reach $2,244.

But if Ethereum does not close above the resistance of $1,840, sellers could return and pull the price down to the support of $1,725.

This drop to $1,725 could come as buyers flee the market after President Trump reinstated the blockade at the Strait of Hormuz as geopolitical tensions between the US and Iran escalate.

Ethereum ETF Outflows Return as Rising Oil Prices Fuel Bearish Narrative

Data from SoSoValue shows that spot Ethereum ETFs had $15 million in outflows on July 13, marking a major turnaround from the $84 million in inflows seen between July 6 and July 10.

The outflows come when investors are abandoning crypto because of the tensions between the US and Iran that pushed the price of crude oil to above $80.

Rising oil prices usually cause traders to reduce their interest towards risk assets, and if the prices keep rising, Ethereum price could drop as buying pressure fades.

The US inflation data that is coming out today, July 14, could also weigh on Ethereum and affect flows to spot ETH ETFs if it supports that the Federal Reserve will hike interest rates.