The price of Ethereum (ETH / USD) fell on Monday as some investors took profits. The coin fell to $ 3,230, slightly below the weekend high of $ 3,340. Ethereum has a market capitalization of more than $ 377 billion and is the second largest cryptocurrency in the world after Bitcoin.
Ethereum benefits from upgrade and DeFi
Ethereum has seen a sharp surge lately. The price of the coin has almost doubled in recent weeks after falling to $ 1,700. Overall, Ethereum has risen nearly 90% since its low in July.
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There are several catalysts that have propelled the price of Ethereum to recent levels. First, Bitcoin has also gained more than $ 16,000 in the past three weeks. In most cases, the price of Ethereum and other cryptocurrencies follows that of Bitcoin.
Second, Ethereum has benefited from the events in the DeFi industry. In the past few weeks, the Total Value Locked (TVL) in the DeFi ecosystem has risen to more than $ 88 billion.
This is a remarkable increase considering the ecosystem’s value fell to less than $ 50 billion during the crypto sell-off. Aave now has a TVL of more than $ 15.7 billion, while Curve Finance and InstaDapp have a TVL of more than $ 10 billion.
In total, 17 of the largest DeFi projects have a TVL of more than $ 1 billion. This is important for Ethereum as most of these projects are built using its technology.
The next major catalyst for the Ethereum price is the recent London hard fork or software update. As part of the update, the developers have implemented some important information for the ecosystem. The most notable is the burn function, with which millions of ethers can be “burned”.
Ethereum price forecast
The 4-hour chart shows that the ETH price has been in a tight range lately. He formed a rising channel, which is shown in black. It has also risen above the 25- and 50-day exponential moving averages.
At the same time, oscillators like the MACD and the Relative Strength Index (RSI) have formed a bearish divergence pattern.
Hence, there is a likelihood that the price of the coin will drop again as investors begin to take profits. If so, the next major mark will be $ 3,000.
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