Ethereum price continues to show promising signs of growth, buoyed by a wave of activity from the DeFi sector and notable inflows from ETFs. On Wednesday, Ethereum’s price climbed for the second consecutive session, inching closer to the psychological barrier of $3,500. At the time of writing, ETH had risen by 1.95%, trading at $3,419. This seventh consecutive effort to stabilize above $3,400 hints at a possible upward reversal after a period of consolidation.
The indicators suggest that Ethereum is on a positive trajectory, particularly with its performance in the DeFi landscape and its ETF metrics. Although the price remains under the Volume Weighted Moving Average (VWMA) of $3,501, the need to retest the $3,500 mark is evident for Ethereum to have a shot at breaking into the $4,000 range.
Interestingly, DeFiLlama reports a 3.93% increase in the Total Value Locked (TVL) across Ethereum’s DeFi protocols within a mere 24 hours. This elevating total of $67.292 billion signifies a growing demand for ETH, further enhancing its value and utility—perfect conditions for boosting the price.
January brings fresh prospects, especially with the recent surge in ETF performance. In December, the nine traded ETFs recorded a remarkable $2.08 billion in inflows—nearly double the November numbers. With renewed investor enthusiasm and the expiration of contracts on the horizon, there’s potential for continued growth in ETH’s ETF landscape, further supporting its price.
Looking ahead, Ethereum finds pivotal support around the $3,400 mark. If it can maintain momentum above this level, there’s a clear pathway for ETH to challenge resistance at $3,450 and possibly climb to $3,500. Conversely, any slip below $3,400 could signal a downside shift, establishing initial support at $3,360. A stronger decline might break through this support, jeopardizing the bullish outlook and dragging the price down to test $3,304.
In essence, Ethereum’s price action exudes a sense of cautious optimism, backed by solid fundamentals in both DeFi activity and ETF performance. Investors should keep a close eye on these indicators, as they will significantly influence ETH’s trajectory in the near future.
