The imminent launch of yETH by Yearn Finance could trigger a renewed surge in buying pressure on Ethereum price price

Since the beginning of the month, Ethereum price has been consolidating in a tight range, mostly located between the $ 447 resistance hurdle and the 78.6% Fibonacci retracement level, without providing any clear signals of position. its next location. Analysts predict that the imminent launch of yETH by Yearn Finance could trigger a renewed surge in buying pressure on the ETH markets. The product will automatically find the highest yielding DeFi protocol/strategy for Ether deposits.

Ethereum price hit a yearly high

Although the TD sequential index had presented a buy signal on August 26, it was uncertain whether or not it was going to be validated.

A spike in the buying pressure behind Ether that began to build up right around support seems to have confirmed the bullish formation. As a result, it led a 25% bull rally over the past week that has seen ETH break above resistance and make a new yearly high of $467.

Now, Ethereum price seems poised for a further advance towards 127.2% Fibonacci retracement level.

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IntoTheBlock’s “In/Out of the Money Around Price” (IOMAP) model reveals there is no supply barrier that will prevent the second-largest cryptocurrency by market cap from achieving its upside potential.

Based on this on-chain metric, there is only one major area of interest between $462 and $475 that is filled by a high number of investors that had previously purchased Ether around this price level. Here, roughly 715,000 addresses are holding nearly 370,000 ETH.

This area may have the ability to absorb some of the buying pressure seen recently. Holders who have been underwater may try to break even on their positions, slowing down the uptrend.

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But if Ether can slice through this hurdle, it would likely climb to $545. On the flip side, the IOMAP cohorts show that Ether sits on top of stable support. Nearly 600,000 addresses bought roughly 8 million ETH between $407 and $420. This crucial area of interest suggests that bears will struggle to push prices down. Right now, the odds favor the bulls.

Analysts predict Yearn Finance’s ETH vault could spark renewed Ether bull run

Yearn Finance’s core products are ‘vaults’ that seek the best returns for yield farmers, while also pooling funds to reduce gas fees. With Yearn’s vault purporting to guarantee the highest returns while removing the labor and research needed to maximize the profitability of yield farming, combined with hype around the brand, the yETH vault is expected to drive up demand for ETH.

Some members of the crypto community speculate that guaranteed premium yields may attract capital that might have otherwise been designated for Ether staking in phase 0 of the ETH 2.0 rollout.

Nuggets News founder Alex Saunders also believes that yETH has major potential:

“The new product that has me excited & even more bullish on Ethereum price, is yETH. This adds to a long list of catalysts for Ethereum, but it also reduces the available supply. Anyone who owns ETH can earn the best yield automatically by HODLing yETH.”

However, some crypto media outlets reporting that Yearn Finance’s Ether ‘vault’ was voted into existence last night, a thread on the project’s governance forum suggests the vote is yet to have taken place — with user ‘Juanma’ describing reports of yETH’s launch as “clickbait.”

Yearn Finance’s founder Andre Cronje tweeted on August 21 that the first community built strategy for an ETH vault was “coming soon.” Then, on August 31, the Twitter account of DeFi Farmer John announced yETH had launched after a test candidate for the project had been deployed.

However, Yearn developer Banteg replied, stating:

“There will almost certainly be another deployment since we’ve already identified a few things to improve.”

Meanwhile, demand for Yearn’s governance token YFI has also reached a fever pitch, with the token more than doubling in price over three days and its market cap growing to more than $1 billion for the first time. YFI currently ranks as the 27th-largest crypto asset and is trading for nearly $34,000. Despite YFI’s massive price relative to other cryptocurrencies, Saunders believes many traders are underestimating the room that YFI still has to grow given its maximum supply of just 30,000 tokens.

According to Glassnode, the Ethereum exchange flow has dropped to a 16-month low. However, miners’ ETH rewards have increased, and so has the ETH exchange rate. It has hit the $464 level but then began sliding back down. The value of the metric has reached a 2-year high, now totaling $602,139.48.

Previously, a 2-year high of this metric amounted to $599,529.97—on Aug. 13.

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