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Ethereum price prediction: on the cusp of a major bullish breakout

Ethereum

invezz.com 20 August 2021 04:30, UTC
  
Reading time: ~2 m

Ethereum (ETH/USD) price rebounded in the overnight session as the volume of cryptocurrencies and activities in the DeFi ecosystem rose. Ether rose to $3,220, which was slightly below this week’s high of $3,345.

DeFi ecosystem vibrant

The Decentralized Finance industry is the biggest test case for the use of blockchain technology. The industry helps developers build applications that provide decentralized financial services. The most popular forms of DeFi are in lending, payments, and exchanges. 

In the past few years, the DeFi industry has had an explosive growth. For one, the total value locked (TVL) in the industry has moved from zero to more than $82.9 billion. This is notable for an industry that is not even mainstream.

Most important, Ethereum dominates the DeFi ecosystem. Most of the biggest projects in the industry are Aave, Compound, InstaDapp, Maker, and Uniswap. 

Aave has created a decentralized lending and investing platform with a liquidity of more than $24 billion. Uniswap, on the other hand, is a platform that allows people to buy and sell coins without using the popular centralized exchanges.

Ethereum price jumped in the overnight session as activities in the DeFi industry remained stable. The total value locked (TVL) in Ethereum’s DeFi platforms has risen to $82 billion. This is notable since it declined below $50 billion two months ago.

Meanwhile, Ethereum’s price has done relatively well after Bitcoin rebounded in the overnight session. After dropping below $45,000 on Thursday, Bitcoin soared to more than $47,000. There is chatter among the analyst community that the price will rise to more than $50,000 during the weekend. In most cases, Ethereum tends to track the action of Bitcoin.

Ethereum price prediction

The daily chart shows that the ETH price found a strong support at around $1,700 in May, June, and July. Since then, the price has rallied and even moved above the resistance levels at $2,400 and $2,875. Meanwhile, the price has jumped above the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has risen to 63. Therefore, the coin will likely maintain the bullish trend as investors target the key resistance at $3,500.


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