Ethereum is currently expressing some immense signs of strength as the cryptocurrency rallies higher while Bitcoin drifts lower.
This is the first time in weeks that the cryptocurrency has risen while Bitcoin’s price drifts lower. DeFi blue chips have also been rallying higher.
The DeFi sector has been one of the biggest beneficiaries of Ethereum’s immense strength throughout the past day, with many posting V-shaped recoveries that appear to mark their recent lows as a long-term bottom.
If these tokens continue rallying higher and mark their recent lows as a long-term bottom, there’s a strong possibility that yield farming and trading volumes on decentralized exchanges will begin rising once again.
This will greatly benefit ETH, driving transaction volume, fees, and further network utility to the blockchain.
One well-known Ethereum whale – with a supposed average entry of below $2.00 per ETH – is now noting that the cryptocurrency is defying “3-years of market structure” with this latest push higher.
He notes that any pullbacks in the near-term are unlikely to last long and will likely be followed by immense upside.
Ethereum Holds Above $450 as Bulls Eye Upside
At the time of writing, Ethereum is trading down just under 2% at its current price of $450. Bulls have been ardently trying to defend this price region throughout the past few hours.
This level was previously resistance, but it could soon transform into support if bulls continue holding it above here throughout the day.
If flipped into a strong support level, this price could provide bulls with a great base to grow upon.
The next key level to watch will be $500, as a rejection or break above this level will be significant and set the tone for where the market will trend in the months ahead.
Early ETH Investor: Upside is Likely Imminent for the Token
One early Ethereum investor who goes by the pseudonym “Tetranode” explained in a recent tweet that the cryptocurrency is currently defying a multi-year bearish market structure – indicating that serious upside could be imminent.
“Still on track, the cup formed and now I expect a handle. If there is a pullback as we hit the 460-480 range, it’s probably not going to last very long. Defying 3-years of market structure is an exercise in futility.”
Image Courtesy of Tetranode.
The coming few days should provide insight into Ethereum’s mid-term outlook, as a sustained bout of trading above $450 will likely provide it with some serious momentum.
Featured image from Unsplash. Pricing data from TradingView.