supporting of the well-believed notion that ETH’s recent lows will mark a long -term bottom for cryptocurrency
The open-source, blockchain computing platform, Ethereum’s ETH price has seen some remarkable upward movement. This is after ETH’s dip to the $120s last week that led to a long period of sideways trading. This period of consolidation expected to lead to a bull-favouring upward movement. This is in support of the well-believed notion that ETH’s recent lows will mark a long -term bottom for cryptocurrency.
If this momentum continues shortly, any potential rally will be further stimulated by the users who are continuing to increase ETH’s Defi lockups. This has an increased demand due to lower circulating supply. The amount of ETH locked in Decentralized Finance, or Defi platforms are at an all-time high with a 22400 per cent increase since December 2017.
At the time of writing, Ethereum is trading up at its current price of $130.19, which marks a notable climb from its daily lows of $128 that were set yesterday before a market surge stimulated by Bitcoin’s rise to $7,450
Within just one week, ETH has showcased considerable potential by bouncing back from its lows of 120 USD during the capitulatory downturn seen across most significant cryptocurrencies. This strong bounce back along with with a sustained upward movement show clear signs of this marking a long- term bottom. But to sustain this momentum, it is imperative that Bitcoin breaks the $7500 resistance region and possibly even move towards $8000. Such movement will spark a massive rally that can allow significant altcoins like ETH to surge further.
A famous crypto analyst known as Hsaka on twitter spoke about this in a series of tweets where he claimed that ETH could be ultra-profitable if Bitcoin breaks its current resistance and aims at the $8000 bracket. “There is the EQ/breaker retest. The trading midrange is always a little dicey; I didn’t pull the 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.
The million-dollar question to be asked right now is if the Defi trend will help booster ETH rallies. The trend has led to about $680 million worth of ETH locked in various Defi initiatives according to data from Defipulse.com. With a significant amount of ETH locked up, this expected to be highly bullish for Ethereum in the long term. Not only has the trend enhanced cryptocurrency’s scarcity by lowering the circulating supply, but it also can improve Ethereum’s fundamental strength.