The Liquid Staking Surge

Lido (LDO), the liquid staking protocol for Ethereum (ETH) and Polygon (MATIC), has experienced a remarkable price surge of 13% in the last 24 hours. This surge follows the long-awaited approval of spot Ethereum ETF applications by the US Securities and Exchange Commission (SEC) on Thursday.

The protocol's native token, LDO, has successfully regained the $2.30 level and is poised to break out of its one-month downtrend structure that has been in place since the market correction in April.

Ethereum ETF Approval: A Game-Changer

The SEC's approval of the Ethereum ETFs was detailed in an official filing, highlighting that the proposals meet the provisions of the Exchange Act and relevant regulations governing national securities exchanges. This approval has led to the emergence of two clear winners in the crypto market: Liquid Staking Derivatives (LSD) coins, with Lido at the forefront.

Lido provides staking support for the Ethereum blockchain without the need to lock tokens or maintain infrastructure, allowing participants to engage in on-chain activities such as lending and farming. This makes it an attractive option for investors looking to participate in the Ethereum ecosystem.

Key Levels to Watch

During the early hours of Friday, LDO reached a peak of $2.49 but has since retraced to its current trading price of $2.35. However, the token remains 68% below its all-time high (ATH) of $7.30, achieved during the 2021 bull market.

Bullish investors should closely observe the next resistance level on the LDO/USD daily chart, situated at $2.55. Breaking this level is crucial for breaking the downtrend structure that has persisted over the past month, potentially leading to retests at $2.70 and $2.90.

Conversely, the $2.21 zone serves as a significant support level, as it acted as a strong barrier for Lido in the past week and a half before the breakout.

The Future Looks Bright

With the Ethereum ETF approval, the LSD sector, led by Lido, is poised to soar. Investors are closely watching the performance of Lido and other LSD coins, as the increased institutional interest in Ethereum could drive further growth in this segment of the crypto market.