Ethereum (ETH) remained under pressure after ARK Invest analyst Lorenzo Valente questioned the network’s revenue model following the rapid rise of Robinhood Chain. The analyst said Ethereum received only $1,538 in revenue from Arbitrum despite Robinhood Chain generating $816,000 since its July 1 launch.
At the same time, Ethereum continued trading below the key $1,840 resistance level, while renewed spot ETF outflows and geopolitical tensions added to market uncertainty.
Valente said Robinhood Chain has become the fifth-largest blockchain by decentralized exchange trading volume, according to DeFiLlama. The network gained traction after introducing a 90-day gas subsidy designed to encourage user adoption.
According to the analyst, Robinhood Chain generated $816,000 in revenue after launching on July 1. He said 10% of that amount went to Arbitrum, while Ethereum collected only $1,538.
That distribution means Ethereum received roughly 0.15% of Robinhood Chain’s revenue. Valente said such figures challenge the view that ETH serves as a meaningful revenue-generating asset. He added that the model should change so Ethereum receives 15% of revenue, while Arbitrum and Robinhood receive 10% and 75%, respectively.
Meanwhile, ConsenSys founder Joe Lubin defended the current fee structure. He said lower fees encourage more companies to build on Ethereum, which could support ETH’s long-term value.
Ethereum continued facing resistance near $1,840 after failing to break above that level for three consecutive days. The repeated rejection suggested buyers remained cautious at higher prices.
Even so, technical indicators continued showing constructive momentum. The MACD line turned positive, while the Relative Strength Index stood at 55, indicating bulls still held the advantage.
If ETH closes above $1,840, it would break above a rising parallel channel. Such a move would also complete a double-bottom pattern and could open the path toward $2,244, representing a potential 22% gain.
On the other hand, failure to clear resistance could send Ethereum back toward support at $1,725. That decline could occur if investors reduce exposure as geopolitical tensions between the United States and Iran intensify after President Donald Trump reinstated the blockade at the Strait of Hormuz.
Read More: Could ETH Break Above $1,800 as ETF Buying Clashes with Retail Selling?
Investor sentiment also weakened after spot Ethereum exchange-traded funds recorded net outflows on July 13. Data from SoSoValue showed ETFs lost $15 million after attracting $84 million in inflows between July 6 and July 10.
At the same time, crude oil prices climbed above $80 as tensions between the United States and Iran increased. Rising oil prices often reduce demand for risk assets, creating another challenge for cryptocurrencies.
In addition, traders turned their attention to U.S. inflation data scheduled for July 14. The report could influence expectations for Federal Reserve interest rate decisions and, in turn, affect demand for spot Ethereum ETFs and the broader cryptocurrency market.
The Ethereum price remains below the crucial $1,840 resistance as debate grows over its revenue share from Robinhood Chain. Meanwhile, ETF outflows, technical indicators, and rising geopolitical tensions continue shaping market sentiment. Investors will closely watch upcoming price action and macroeconomic developments.