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- Ethereum shows signs of a bullish reversal, supported by DeFi sentiment and positive technical indicators.
- Despite initial losses, Ethereum’s price stabilizes around $3,379 with upward potential.
- The DeFi sector within Ethereum’s ecosystem rebounds, signaling growing confidence, with TVL surpassing $50 billion.
The cryptocurrency market, especially Ethereum (ETH), is showing signs of a positive turnaround after initial setbacks, boosted by a strong sentiment in decentralized finance (DeFi) and favorable technical signals.
ETH saw a decline, testing support around $3,200. Yet recent signals indicate a shift towards a more optimistic path, with Ethereum’s price hovering near $3,379 and displaying gradual upward movement, aiming for levels beyond $3,500.
Alongside this positive sentiment, the DeFi sector within Ethereum’s ecosystem appears resilient amidst recent market volatility. Despite a slight decrease from its peak of approximately $58 billion to $47 billion, the total value locked (TVL) in DeFi has bounced back to over $50 billion, indicating growing interest and confidence in the market’s future prospects.
Investors seem more inclined to participate in securing the Ethereum network and earning additional coins rather than immediately selling for profit. If this trend of increasing ETH value locked in smart contracts persists, it’s reasonable to expect further price increases in the upcoming week and month.
Technical indicators support the ongoing bullish momentum for Ethereum. The token is steadily approaching the $3,500 threshold, with the 20-day EMA serving as a crucial support level at $3,364. The MACD indicator has signaled a buy, suggesting rising buying pressure and affirming the bullish outlook.
The upcoming Bitcoin halving event could also spur increased interest in major altcoins like Ethereum, potentially driving prices to new highs. However, resistance is expected around $3,435, as a significant number of addresses hold ETH at this level.