What will happen in the Ethereum (ETH) price is one of the frequently asked questions in the cryptocurrency community. Analysts say the price could move towards $ 500 if the current level is broken in ETH.
So what are the details that will take ETH to the top? One of the most important points that can make ETH rise to the top is DeFi. For DeFi, it will be possible to call it Ethereum’s totem right now, and this is largely attributable to the ETH price pump.
According to Defi Pulse, a site that tracks the number of ETH locked by different DeFi dApps, over $ 6 billion ETH has been locked as collateral. This is five times more than when DeFi started gaining momentum in early February when ETH rose to about $ 288.
Why ETH Can Rise
First, some supporters think there will be higher or better prices when ETH 2.0 comes out. The Ethereum price should protect higher prices, as Proof-of-Stake and validators must take over their stake to protect the network from bad actors. And the road to ETH 2.0 is getting more positive day by day. The activation period remains uncertain, but will likely be in November or early next year.
The second reason for interest in ETH is the level of diversification that DeFi offers. A record number of coins are now emerging in Ethereum for DeFi. The luck DeFi offers through yield farming is what helps pump the Ethereum price by feeding the Ethereum bulls. Also, Uniswap, a popular DEX with ETH paid as a fee, is gaining attention. Projects are starting to be listed directly on Uniswap. The more popular Uniswap is, the better for ETH demand.
ETH Price Analysis
The Ethereum price is trading at $ 427 at the time of writing, earning roughly 8 percent against both the US Dollar and BTC. From the daily chart, prices not only broke above the bullish flag, there was an increase in trading volumes behind the rise. This increase pushed ETH prices above $ 400 as buyers consolidated their positions.
Given FOMO, every drop should be a buying opportunity. However, the buyers’ failure to follow last week’s gains could indicate a high as the Ethereum price dropped below $ 400. $ 400 is a significant level of psychological support, and any breach on the downside could trigger profit-making, sparking dips.
The analyst, @TheCryptoCactus, made the following comments about ETH on Twitter:
“It looks like the bears are trying to push this weekly close below $ 425, which was my last major resistance level before it started rising to $ 500.”
$ETH / USD
Seems as though bears are trying to get this weekly close below $425 which was my last major resistance level before we start running up towards $500+…
Watching carefully to see where the daily/weekly closes, currently working on something special, news soon! pic.twitter.com/1gA67cdMiw
— Cactus (@TheCryptoCactus) August 16, 2020
A close like the chart shared by the analyst is likely to increase the price to $ 500.
On the other hand, a simple retest and a rise in the continuation of the trend in the August 13 trade interval may allow ETH prices to reach 2020’s highest levels in the coming days.