ETH price has seen a notable rebound but still remains caught within its wide multi-week trading range
ETH price has seen a noticeable rebound from recent lows but has absorbed stuck in the trading range for weeks. The current lack of strong momentum has surprised many investors, as it has been equipped with large utilities recently, specifically DeFi.
ETH/USD 4 hours chart | Source: Tradingview
The price action of ETH price has recently been linked to Bitcoin
The failure to post a quick rally shortly could make ETH price less of an opportunity to see any kind of strong momentum in the coming years. Ethereum’s price action has recently been linked to Bitcoin. This has resulted in a large trading range between $ 230 and $ 250.
ETH has been quite noticeable lately, mainly due to DeFi’s explosive development. The Ethereum ecosystem has seen a massive influx of new users over the past several days and weeks due to the rise of so-called yield farming. This trend is comprised of individuals leveraging Ethereum-based tokens to capture DeFi incentives. In some cases, these incentives are massive, with users harvesting yields as high as 200% per year due.
The prospect of massive returns with minimal risk has lured a massive number of new users into the Ethereum ecosystem. This has provided many DeFi-related tokens with massive upside but has not had any notable impact on ETH’s price.
Despite witnessing such tremendous growth, ETH’s price has not yet shown its strengths. That’s why traders who believe either now or never Ethereum can see a fierce rally.
At press time, ETH price is trading up below 2% with the current price of $ 245. This marks a noticeable surge from the recent low of around $ 230 that was set yesterday. It also marked the climb from a low of the $ 220 range that was set last week.
This spike occurred alongside Bitcoin as seen and not enough to push the cryptocurrency beyond its main short-term resistance level, ranging between $ 250 and $ 255.
There are many strong fundamentals currently operating in favor of Ethereum, although these are not recorded in its price.
According to Avi Felman, head of trading at BlockTower Capital, there are only a few risks to this underlying strength.
1. Wrapped BTC could become widely used, proving that no one cares about ETH if btc is available
2. A very volatile BTC could hurt the ETH/BTC pair
3. While there is locked ETH, most new locked assets are actually stablecoins
— Avi IS RIGHT (@AviFelman) June 22, 2020
According to analyst Ceteris Paribus, it is important for Ethereum that the ETH price will increase in the next six months. He points out a few key factors to ensure this:
Although in the near-term it is possible that Ethereum will be overshadowed by DeFi-sector tokens, this trend may not persist for too much longer. And we have to wait for the answer, but it’ll soon.
You can also check Ethereum Price here.
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