- Summary:
- Ethereum price upside looks likely to continue in the coming days as DeFi activity spikes and ETF inflows signal stability.
Ethereum price stayed on the upside on Wednesday, riding for the second session in succession to stay on course to retest the psychological $3,500 mark. ETH was up by 1.95% at the time of writing and traded at $3,419, the seventh successive attempt at finding stability above the $3,400 mark. This signals a likely reversal to the upside after the recent consolidation.
VWMA, DeFi and ETF metrics favour Ethereum price growth
ETH price is still below the Volume Weighted Moving Average (VWMA) on the daily chart, signaling an ingrained downward-leaning momentum. The VWMA level is at $3,501 as of this writing. That affirms the need for the coin to retest the $3.5k mark to stand a chance to return to return to the $4k territory.
Notably, the resurgence by ETH price is accompanied by a spike in Ethereum chain’s performance in the DeFi ecosystem. According to DeFiLlama, DeFi protocols in the Ethereum ecosystem saw their Total Value Locked (TVL) grow by a combined 3.93% in the 24 hours preceding this writing. Ethereum’s total TVL stood at $67.292 billion, and a continuation of the trend could increase the utility of ETH coins and help spur the price.
Meanwhile, Ethereum’s ETF performance also grew substantially in December, with the nine traded ETFs bringing in $2.08 billion in inflows, almost double the figure generated in November. The new year presents an opportunity to extend the ETH ETF growth curve, with the expiry of contracts and upbeat investor sentiment.
Ethereum price prediction
Ethereum price pivots at $3,400 and the upside will prevail if the momentum keeps the asset above that level. That could drive ETH to the first barrier at $3,450. However, an extended control by the buyers will rise above that level and potentially test $3,500.
On the other hand, moving below $3,400 will signal a shift in the momentum towards the downside. That will likely see the establishment of the first support at $3,360. However, a stronger downward momentum could break below that level and invalidate the upside narrative. Also, it could extend losses and test $3,304.
