Ethereum price is bouncing back after dropping by more than 32% between Sunday and Monday. ETH is up by more than 2% and is trading at $1,120, which is slightly higher than yesterday’s low of $930. Bitcoin, Stellar, and Chainlink prices are also rising today.
What happened: Ethereum price slumped yesterday in part because of the overall cryptocurrency weakness. Other digital currencies like BTC, XRP, and XLM also slumped, pushing the total market cap below $1 trillion.
ETH price also dropped because of Solana, the relatively new network that is gaining popularity among DeFi developers. The network claims that it is a “fast, secure, and censorship-resistant” blockchain network. Developers say that is a faster and more secure alternative to the Ethereum network.
However, in reality, shifting from Ethereum will be a tough thing considering that it dominates the DeFi ecosystem. All DeFi projects tracked by DeFiPulse like Uniswap, Aave, and Maker are all built on the Ethereum network.
ETH price technical outlook
On the daily chart, we see that Ethereum price had one of its worst days in modern times yesterday. It has since then bounced back and is still above the short and longer-term moving averages. It is also slightly above the rising black trendline that connects the lowest levels starting from March last year.
Therefore, I suspect that the price will bounce back as opportunistic investors rush to buy the dips. If this happens, there’s a possibility that it will soar to last week’s high of $1,362.
Ethereum price chart