ETHUSD: Ethereum Price in Tight Range as DeFi Bounces Back
Ethereum price (ETHUSD) is down by 0.45% in a calm trading day for digital currencies. Investors are therefore focusing on the dollar movements and the Decentralised Finance (DeFi) industry. The currency is trading at $351, which is in the same range it was last week.
On Friday last week, the price of Ethereum and other digital currencies tumbled as investors reacted to news of Trump’s Covid-19 infection. The market also reacted to the overall stronger US dollar.
Today, the currency is little changed as the US dollar falls following news that Trump is making strong progress. In a statement yesterday, his medical team said that he was likely to be discharged today.
Ethereum price is also reacting to the new developments in the DeFi industry. In the past few weeks, the volume of capital locked in the network has risen to more than $10 billion after it dropped to ~$7 billion in September.
For starters, the DeFi industry is seeking to change how people interact with the traditional financial industry. For example, DeFi companies enable people from around the world to borrow money online using blockchain. By so doing, it aims to reduce costs and make financial services available to more people.
Today, the biggest DeFi projects are Uniswap, Maker, Aave, and Curve Financial. The four companies have more than $6 billion locked into them. Indeed, the industry has continued to grow. In September alone, Uniswap processed more than $15 billion, which was a higher number than Coindesk. This increase was mostly because of the launch of Uniswap’ token, UNI and the rising popularity of the industry.
Ethereum price technical outlook
The daily chart shows that Ethereum price has been trading in a tight range in the past few days. The price is also trading at the 25-day and 15-day exponential moving averages. Also, it is above the ascending trendline that connects the lowest levels in March, June, July, and September. The price is also stuck between the first support and pivot point.
Therefore, the trend will likely remain being bullish so long as the price is above the ascending trendline. If it does, the next key level to watch will be the pivot point at ~$400. On the flip side, a move below $314 will invalidate this trend. This price is the lowest level since September 22.