Lido (LDO) Reclaims $2.30 as Anticipated Ethereum (ETH) ETF Approval by SEC Sparks Market Surge

Lido (LDO), a liquid staking protocol dedicated to the Ethereum (ETH) and Polygon (MATIC) blockchains, has enjoyed an impressive elevation in price over the last day.

The price of Lido (LDO), a liquid staking protocol for the Ethereum (ETH) and Polygon (MATIC) blockchains, has seen a notable surge over the last day. The rise comes amid the approval of several spot Ethereum ETF applications by the US Securities and Exchange Commission (SEC), which was announced on Thursday this week.

The native currency of the protocol, LDO, has seen a successful recovery back to the $2.30 level. It is now set to break out of its month-long downtrend, which began during the market correction in April.

This surge of interest is being driven by the SEC's approval, which was detailed in an official document. The approval states that the proposals met the Exchange Act's criteria and other applicable regulations that govern national securities exchanges.

Among the approved proposals were those from major institutions like BlackRock, Grayscale, Bitwise, VanEck, Ark Invest/21Shares, Invesco Galaxy, Fidelity, and Franklin Templeton. The commission examined these proposals to ensure they met the requirements to prevent fraud and manipulation, fully protect investors, and serve the public interest.

Well-known crypto analyst Daan Crypto Trades highlighted the impact of the Ethereum ETF approval, stating that it has created two main winning sectors, with Liquid Staking Derivatives (LSD) coins leading sector one. Lido is a pioneer in this sector, facilitating staking for the Ethereum blockchain without needing to lock tokens or maintain infrastructure. This allows participants to engage in on-chain activities like lending and farming.

LDO began Friday trading at a high of $2.49 before retracing to its current trading price of $2.35. This price movement attracted the attention of a large pool of investors, with Spot On Chain data revealing that six new major investors withdrew an impressive 4.3 million LDO, valued at $9.59 million, from the crypto exchange Binance over the last 24 hours.

These recent developments suggest a growing preference for holding onto the token. The sentiment anticipates a potential increase in LDO's price together with Ethereum as the newly approved index funds for the second-most valuable cryptocurrency hit the market in the upcoming months.

Additionally, CoinGecko data shows that Lido's trading volume was at $350 million over the last day, marking a 78.60% increase compared to Thursday's transactions. However, the token's price is still about 68% below its all-time high of $7.30, which was reached during the 2021 bull market.

Looking ahead, bullish traders will be watching the next resistance level in the LDO/USD daily chart, which is at $2.55. Breaking this level could potentially invalidate the downtrend structure and open up the path for further retests at $2.70 and $2.90. As for support, investors should keep an eye on the $2.21 zone, which acted as strong support for Lido prior to the breakout last week.