Ethereum has seen better days—but not many of them lately.
After a strong sell-off last week led the token to lose more than 30% of its price during a four-day drop, ETH has finally managed to stabilize. Today, the price of Ethereum is even up a bit, breaking a small five-day resistance at the $358 level.
In the last 24 hours, ETH has jumped about 5% to its current price of nearly $365.
The coin’s relative strength index (RSI)—a metric created to estimate whether an asset is being oversold or overbought—shows that Ethereum is currently in a healthy market zone, with a lot of room for growth (before the next big sell-off, that is.)
At this rate, it may not be surprising to see ETH test $380 soon, though a recent correction indicates that it will likely face some resistance along the way.
In terms of market sentiment, Ethereum has been fundamentally bullish throughout 2020. It started the year on a fast rising trend, before the coronavirus pandemic and the ensuing financial crisis changed everything for, well, everyone.
Since March, however, ETH has resumed its bullish run—perhaps with even greater force.
The market crash in earlier this month has been the only hiccup comparable to the mid-March meltdown in terms of impact. But it appears that the worst might be over for now. Then again, this is crypto, and you really just never know.
Ethereum’s recovery today wasn’t an isolated event either. Bitcoin also bounced back a bit and is now trading for around $10,350.
What’s more, the tokens associated with the booming decentralized finance (DeFi) industry have similarly rebounded.
YFI, for example, the governance token of the yearn.finance DeFi protocol (and second most capitalized coin in DeFi, bar Chainlink), is up 13% today and trading above $30,000 per coin.
DefiMarketCap data shows several DeFi tokens exhibiting bullish behavior over the last 24 hours, including a jump of 66% for Uniswap’s ETH/SAND Pool.
Since Ethereum is home to the vast majority of DeFi products, it’s no surprise to see such a correlation. A boost in ETH prices is sure to stimulate trading on many of the Ethereum-based projects, especially those in which big money is at stake.
Then again, as prices go up, so do those pesky transaction fees that are bogging down the network. And the vicious cycle continues.
Disclaimer
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.
