Will the Upsurge of ETH Locked in DeFi Affect Its Price Positively?
The price of Ethereum experienced certain remarkable upward momentum today. It follows a long time of trading on the sideways, caused by the decline in its price to lows of $120 in the previous week. This time, the price is consolidating, and it seems to be leading to a move on the upside. In turn, the trend may support the idea that the lows of ETH in recent times will highlight a long-term bottom.
Suppose the further momentum keeps holding well in the near-term. In that case, any likely rally may be further influenced by the continuous locking of a remarkable amount of Ethereum into DeFi platforms. Such action brings about a lower circulating supply.
At the press time, ETH’s price is trading under 4% at $132.50, marking a remarkable surge from its daily lows of $128. These daily lows registered yesterday before the upsurge record in the entire market when the price of BTC attained $7450.
Predicting the Immediate ETH Price
In one week, ETH exhibited an impressive move from its recent lows of $ 120, established during the capitulatory downturn observed in the market. Its powerful bounce from this level and its sustained upward momentum could point to a long-term bottom.
Bitcoin needs to surge over the hurdle existing at $7500 for ETH to maintain this newfound momentum. A rise over this level could bring about a massive rally, enabling altcoins such as ETH to do the same.
Hsaka, a renowned crypto analyst, took to his Twitter account to explain the following: The DeFi trend is sweeping across the crypto markets; it could make ETH bullish in the long-term due to the remarkable amount of this crypto that gets locked up.
Information from Defipurse.com reveals that not up to $680 million worth of ETH gets currently locked in various DeFi initiatives, which improves the scarcity of the crypto by bringing down the circulating supply. As the number keeps growing in the coming months, the DeFi trend may improve ETH’s fundamental strength and boost any bullish move that comes up in the near-term.