The cryptocurrency market, particularly Ethereum, is poised for a positive upturn following initial challenges, driven by a strong sentiment in decentralized finance (DeFi) and favorable technical signals.
After experiencing a drop and testing support at $3,200, Ethereum has shown signs of a more optimistic trajectory. The current price of Ethereum is stabilizing around $3,379, with a gradual upward trend indicating a potential move towards exceeding $3,500.
Despite market fluctuations, the DeFi sector within Ethereum's ecosystem remains robust. Total value locked (TVL) in DeFi has rebounded to over $50 billion from its recent decline, reflecting a growing interest and confidence in the sector's future.
Traders are increasingly interested in participating in securing the Ethereum network and earning additional coins rather than immediate profit-taking. This shift towards locking up ETH in smart contracts could lead to further price increases in the coming weeks and months.
Technical indicators continue to support Ethereum's bullish momentum. The token is steadily approaching the $3,500 mark, with the 20-day EMA serving as a key support level at $3,364. The MACD indicator has signaled a buy, indicating rising buying pressure and reinforcing the positive outlook.
The upcoming Bitcoin halving event may spark heightened interest in major altcoins like Ethereum, potentially propelling prices to new highs. However, resistance is expected around $3,435, as a significant number of addresses are holding ETH at this level.
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