DeFi
Ethereum Price Forecast As DeFi TVL Rises to $57 Billion, ETH Poised to Gain $4,000 This Week?
Ethereum Price Forecast: ETH is approaching its highest level in just over a week, alongside a strong rebound in the crypto from last week’s low. Bitcointhe largest cryptocurrency, maintains the bullish outlook approaching the $65,000 mark.
Major altcoins like Binance Coin (BNB), Solana (SOL) and XRP are also in the green, rewarding patient investors. Nonetheless, the market slump cannot be ignored, especially in light of the many internal and internal factors at play.
Externally, soaring inflation is a hindrance to risky asset classes like crypto. Recently, the Federal Reserve left interest rates unchanged amid persistent inflation in the United States since January.
The outlook for the first rate cut of the year has changed as the Fed struggles to bring inflation back to 2%. Experts predict the first-order reduction could come later in the year, rather than in June.
Current Ethereum price predictions show the leading smart contracts token hovering at $3,122 on Monday, down a modest 0.5% in 24 hours. Ranked #2 in the market, Ether boasts $374 billion, a value backed by $10 billion in trading volume.
Ethereum Price Forecast: Does DeFi TVL Impact ETH Technical Outlook?
According to the data processed and presented graphically by Lama DeFi, the cumulative value of all assets locked in smart contracts within the ecosystem is on the move again, amounting to $57 billion. While that figure is a pale shadow of the record $109 billion, continued increases reduce potential selling pressure.
Ethereum DeFi TVL | Lama DeFi
Investors demonstrate confidence in the long-term value of a coin by staking their holdings to grow their portfolio. Staking rewards are distributed daily on an annualized basis, allowing the community to participate in processing transactions and securing the network.
A high total value locked (TVL) reduces circulating supply and, therefore, potential selling pressure. Sentiment is also improving, encouraging more people to buy ETHthus supporting the token for gains.
Can Ethereum hit $4,000 in May
Investors are holding tight to their positions as the crypto market rebounds in May. April ended several months of a bullish streak that began in the fourth quarter of last year. Major cryptocurrencies have woken up strongly this week, aiming for higher levels this week and a rally to $4,000 before the end of May.
The bullish bet on Ethereum Price depends on the descending wedge observed on the daily chart. Although it is an uptrend, it remains unconfirmed until the price breaks above the upper trendline.
Traders activate their buy orders following this breakout and anticipate a move equal to the distance between the widest points of the wedge – approximately 25%.
Ethereum Price Prediction Chart | Commercial view
On the sell side, traders cannot ignore the Relative Strength Index (RSI) position at 46. A close look reveals that the indicator is stuck below trendline resistance. If this trend continues, selling pressure will be a time bomb.
Ethereum price is also below two bull market indicators; the 20-day exponential moving average (EMA) and the 50-day EMA. Bulls need to reclaim these two key levels to validate their strong hold on the uptrend.
Otherwise, there is a glaring possibility of another sweep of the $3,000 and $2,800 support zones to collect more liquidity.
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