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ETH price can trigger a parabolic race 300% due to this factor

ETH price witnessed a slight rebound today alongside Bitcoin and most of the other major altcoins. It regained $ 200 after an intense selling pressure that caused the price to plummet to $ 190 yesterday.

ETH parabol 300 2

However, its recent recovery may prove to be fleeting, as ETH is currently at the top of a sharp decline below the key psychological support of $ 200.

Despite the ongoing sell-off, a prominent analyst is noting that ETH may see an explosive rally if the bulls are able to defend an important price area lower than the current price of ETH.

Not only that, ETH is one of the pioneers in annual performance. It grew more than 100% at the beginning of the year, fueled by the rapid growth of the decentralized financial movement (Defi).

Defi ETH continues to consolidate, potentially replacing Wall Street’s back-end

ETH is showing a lot of promise that an analyst believes will eventually replace Wall Street’s old back end with a neutral payment layer.

But a sell-off due to fear pushed the ETH price back to the yearly low, and because the recession may be on the horizon, these new assets are severely affected.

Although Ethereum is a cryptocurrency like Bitcoin, it has only a few similarities. Bitcoin is designed to pay for, store wealth, and transfer wealth. Meanwhile, ETH is a smart contract platform with nearly limitless potential use cases.

In the crypto hype bubble, Ethereum was used to launch ICO services, helping the price skyrocket to an all-time high of $ 1,400. But once that use case was exhausted, the value of Etheruem dropped.

However, the tremendous growth in the Defi movement has revived interest in Ethereum and offers a case of its best potential use: replace Wall Street’s back-end.

In a first foray, a $ 40 million bond was issued on ETH as part of the capital transfer into the Fatburger restaurant brand.

Blockchain not only provides digital for all transactions, but Ethereum is also transmitted into Bloomberg Terminal allow anyone to hold a company’s stock and pay quarterly interest.

According to the founder of Mythos Capital, another $ 500 million bond is in the planning for Ethereum and say that this trend will probably continue until the second digital currency completely replaces the back end of Wall Street.

This use case could help Ethereum set an all-time high in the coming months as DeFi continues to grow.

A visit of $ 140- $ 160 could spark the explosive Parabolic race towards $ 800

Bitcoin analyst Jack explained in a recent tweet that he would buy all ETH once the price could drop to $ 141 – $ 166 because support in this area could cause ETh to explode to $ 837 in a short time.

“Truth is that I will be buying all ETH I can between $141 and $166 if it gets to it. I will then gladly sell it all back to you between $616 – $837.”

Still in danger of further decline

After plummeting to $ 190 yesterday, the bull has stepped up and pushed Ethereum back above $ 200. However, this rally is not strong enough, as ETH is currently at risk of falling below this price level again.

The recent sell-off of ETH erased almost all of the profits it made in late January and early February. It is currently trading off nearly $ 100 from its highest level of $ 290.

Crypto analyst Michaël explained in a recent tweet that the ETH key area needs to rise above to launch another uptrend of $ 212, and failing to cross this area can result in significant losses.

“Bouncing from the $195 level here. The main key zone to break is $212-216. Doubt we’ll break it. Looks more natural for a bearish retest and dropdown after towards $170-180.”

The next few days and weeks will give investors insights into a sliding movement about the region between $ 100, because any weakness of Bitcoin could cause altcoins to plummet. However, this potential short dip may prove to be very optimistic and ultimately allow it to begin the next parabolic race.

You can see the ETH price here.

Disclaimer: This is not trading advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

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