Ethereum’s price has incurred some notable upwards momentum today after being plagued with a long period of firm sideways trading that came about after ETH’s dip to lows of $120 last week.
This period of consolidation appears to be resolving in a bull-favoring movement upwards, which could support the notion that ETH’s recent lows will mark a long-term bottom for the cryptocurrency.
If this momentum continues to hold strong in the near-term, any potential rally could be further perpetuated by the fact that users are continuing to lock a significant amount of ETH into DeFi platforms – a trend that has led to a lower circulating supply.
Ethereum Climbs 4%, But All Eyes Remain on Bitcoin
At the time of writing, Ethereum is trading up just under 4% at its current price of $132.50, which marks a notable climb from its daily lows of $128 that were set yesterday just prior to the surge seen in the aggregated market that was sparked by Bitcoin’s climb to $7,450.
Over a one week period, ETH has been able to climb significantly from its recent lows of $120 that were set during the capitulatory downturn seen across most major cryptocurrencies, and its strong bounce from this level coupled with its sustained upwards momentum may mean that this will mark a long-term bottom.
If Ethereum is to sustain this newfound momentum, it is imperative that Bitcoin breaks above the resistance it has found around the $7,500 region, as a break above this level could spark a massive rally that allows major altcoins like ETH to similarly surge.
Hsaka, a popular crypto analyst on Twitter, explained in a recent tweet that he is currently in an Ethereum long that he is leaving open, which he believes could prove to be ultra-profitable if Bitcoin breaks its current resistance and targets $8,000.
“There is the EQ/breaker retest. Trading midrange is always a little dicey, I didn’t pull trigger on this one, still riding my $ETH long. At HTF resistance on BTC, I saw a lot of people talking about shorting this area. I see a 3D SFP and bullish engulfing, $8k+ likely IMO,” he explained.
Will DeFi Trend Help Bolster Any ETH Rally?
The DeFi trend that has swept across the cryptocurrency markets may prove to be highly bullish for Ethereum in the long-term, as it has led to a significant amount of ETH being locked up.
According to data from Defipulse.com, there is currently just under $680 million worth of Ethereum locked in various DeFi initiatives, which enhances the cryptocurrency’s scarcity by lowering the circulating supply.
As this number continues to grow in the coming months, it is probable that the DeFi trend could enhance Ethereum’s fundamental strength and bolster any bullishness that it sees in the near-term.