Ethereum priceis having a strong day today. It has moved back to $1,400 and has risen by more than 5.7% in the past 24 hours. This has pushed the ETH market cap to more than $160 billion.
Ethereum news: ETH price is soaring mostly because of the strong demand for Decentralised Finance (DeFi) projects. The total value locked in DeFi has surged from less than $1 billion in January 2020 to the current $27.8 billion.
Eight of the biggest DeFi projects now have more than $8 billion in value. Therefore, investors believe that Ethereum is a viable investment because of its proven use-case in the industry. Dexes like Curve Finance, Uniswap, and Sushiswap have grown their TVL to more than $2.3 billion.
Ethereum price prediction
The weekly chart shows that the ETH price rose and reached a high of $1,485 this year. This price was close to the all-time high that it reached in 2017. Since then, the price has struggled to move to the next main resistance at $1,500.
This price action is not by mistake. In fact, the price is forming a pattern known as cup and handle. It has already completed the cup part and the current consolidation part is the handle. The C&H pattern is usually bullish.
Therefore, while the consolidation will likely take a while, there is a high probability that it will break-out higher. If this happens, the next key levels to watch will be $1,500 and then $1,600.