The Ethereum price seems to be gaining momentum after consolidating in the past few trading sessions. The altcoin is trading at $2,840, which is about 63% above the lowest level on May 21. It has a market capitalisation of more than $320 billion and is the third biggest cryptocurrency.
What happened: After spending the past few days in a consolidation mode, the price of Ethereum and other cryptocurrencies has done well in the past few hours. Ethereum has risen by more than 7.8% in the past 24 hours while Bitcoin, Binance Coin, and Dogecoin have risen by 5%, 15%, and 14%, respectively.
Ethereum has done relatively well because of the rising inflows into the Decentralized Finance ecosystem. Data compiled by DeFi Pulse show that the total value locked in the ecosystem has jumped to more than $67 billion. This means that the amount has jumped by more than $17 billion in the past few weeks. This is an important factor since Ethereum is the most preferred platform by DeFi developers. So, what next for ETH prices?
Ethereum price forecast
The four-hour chart shows that demand for Ethereum has started to increase as evidenced by the size of the last bar. Another notable factor is that ETH has cleared the 38.2% Fibonacci retracement level. Further, it is a few pips below the important resistance at $2,915, where it struggled to move above on May 26 and 27.
Therefore, if the price manages to move above this resistance, it means that bulls have prevailed. As such, this will open the possibility of the currency rising to $3,375, which is the 61.8% retracement level. This price is about 20% above the current price and is in line with my previous Ethereum prediction.
However, if the price fails to move above this resistance, it will mean that ETH has formed a double-top, which is usually a bearish signal.
ETH price chart
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