Ethereum price has underperformed its peers in the wider crypto market, leading to a somewhat muted response in the social media space. While Solana has gained 52 percent, XRP is up by 189 percent and Cardano has gained 214 percent in the last month, ETH has risen by 43 percent during that period. Solana’s performance is particularly threatening to Ethereum’s long-running dominance in the meme coin and DeFi spaces
However, Ether has recently picked up a stronger momentum relative to its competitors, and its delayed growth spurt offers investors a good entry price. At its current price, Ethereum is still 16 percent below its year-to-date high of $4,095 set in March. Also, it is 29 percent below its all-time high of $4,878.
Elsewhere, according to IntoTheBlock data, 11 percent of ETH holders are “Out of the money”. If these hold up for a potential profit, it could provide a strong traction for the upside. Meanwhile, DefiLlama data shows that Ethereum chain’s TVL in the DeFi ecosystem grew by 12 percent in the last week, outperforming Solana’s 7.8 percent and Tron’s 3.4 growth rates.
Furthermore, Ethereum’s TVL growth was the second-highest among the top ten chain’s, only trailing Avalanche’s 13 percent growth during that period. After weeks of DeFi underperformance, an uptick in Ethereum’s TVL signals increased demand for ETH, which is good for the price upside.
ETHUSD looks likely to continue the upside above the pivot mark at 3,450. That will likely result in movement to 3,496 where it will meet the first resistance. If the momentum strengthens further, ETH will break above that barrier and could test 3,520.
On the downside, moving below 3,450 will favour the sellers to be in control. In that case, initial support is likely to come at 3,425. However, extended control by the sellers could break below that level, effectively invalidating the upside narrative. Meanwhile, the second support is likely to come at 3,404.
This post was last modified on Nov 25, 2024, 13:57 GMT 13:57