Ethereum price declined on Monday as investors took profit following Sunday’s double-digit rise. The crypto coin was at $2,366 and down by 6.2% on the daily chart at press time, subdued by underlying bearish sentiment tied to concerns over global trade tariff war.
The sharp spike over the weekend was driven by a strong sentiment following US President Donald Trump’s mention of Ethereum among the five cryptos lined up for inclusion in a strategic Federal crypto fund. Other coins include Bitcoin, Solana, XRP and Cardano (ADA). This augurs well for the cryptocurrency ecosystem as it could result in strong institutional adoption.
Despite its gains, Ethereum price is still below the Volume Weighted Moving Average (VWMA) level. That signifies an underlying weakness that will limit the crypto coin’s upside potential.
However, Ethereum chain’s DeFi performance rose significantly in the last 24 hours. According to DeFiLlama, the chain’s Total Value Locked (TVL) rose by 3.6% in the last day to hit $53 billion as of this writing. A continuation of the trend could favour further gains by ETH price.
However, concerns over rising trade tariff wars continue to propel a downward sentiment. This has muddied the waters in the global financial markets and injected a risk-off sentiment that continues to exert downward pressure on high-risk assets like cryptocurrencies.
That said, the upcoming White House crypto conference, scheduled for March 7 will provide support for ETH price as investors anticipate a clearer pathway to Fed crypto adoption.
Ethereum Price Prediction
Ethereum price pivots at $2,346 and action above that level will favour the buyers to be in control. The ETHUSD pair will likely encounter initial resistance at 2,475, and breaching that level could strengthen the upside momentum to test $2,638.
Alternatively, the momentum will shift to the downside if ETH goes below 2,346. That could see movement towards the first support at $2,225. Breaking below that mark will invalidate the upside thesis. In addition, an extended control by the sellers could take action lower to test the second support at $2,104.
