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- The DeFi sector has been screaming higher in the past couple of weeks, with the steady stability seen by Bitcoin increasing its price action
- Ethereum, which remains the backbone of this industry, has also been stable, closely following BTC in recent times.
- If ETH can push higher in the near term, it could create further favorable winds that strengthen the DeFi sector and help the tokens within it see further gains.
- It notably notes that ETH may soon push above $ 470 once again, which could help the decentralized finance sector see significantly further momentum in the days and weeks to come.
Ethereum has provided the DeFi industry with some strong favorable winds in recent times, with its recent stability allowing it to act as a solid foundation on which the market can grow.
Bitcoin has firmly guided Ethereum’s price action, making it vital for ETH that BTC remains stable around its current price and does not see too much volatility.
If Bitcoin starts to see an independent rally that comes at the expense of altcoins or dips lower and creates headwinds for the aggregate market, it could slow the growth seen by “blue chip” tokens resident in the DeFi sector.
These tokens have seen tremendous momentum recently, with many posting gains of 100% or more in the past two weeks.
A trader believes Ethereum could soon rise higher and help grow DeFi with it.
Ethereum closely follows Bitcoin as the DeFi market pushes higher
Ethereum has remained stable in the region above $ 400 for the past few days and weeks.
Earlier this week, buyers were attempting to hold the cryptocurrency above $ 470, at which point it faced inflows of selling pressure that brought it to its current price of $ 453.
DeFi tokens have seen immense strength relative to the rest of the market, with many having traded well over 100% from their recent lows.
Top Trader says ETH may rise as DeFi goes bullish
A highly respected trader – known for his seven-figure positions – explained in a recent tweet that Ethereum expects to rise towards $ 471 in the near term.
Notice this is happening as the DeFi sector becomes increasingly bullish.
“DeFi looks neutral to bullish and I think ETH looks poised for a 471 tap resistance. Added to the longs. I’ll add even more to 471 break and hold.”
Image Courtesy of Flood. Source: ETHUSD on TradingView.
Ethereum’s next trend may hinge on Bitcoin in some way, but there is a possibility that the growing strength seen by DeFi tokens will help to skyrocket ETH.
Featured image from Unsplash. Charts from TradingView.
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