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Ethereum is currently trading for $ 450 as of this writing, stuck in a short-term range with DeFi coins as Bitcoin has entered a consolidation phase. Analysts are optimistic about the leading cryptocurrency due to the technical signals that it may return to highs.
Bitcoin is also viewed as bullish by many analysts, indicating on-chain trends. Bitcoin continuing to push higher should bode well for Ethereum over the medium to long term.
Related Reading: Here’s Why Ethereum’s DeFi Market Could Be Close To Bottom
Ethereum and DeFi could rebound, key chart shows
According to famous cryptocurrency trader “Flood”, Ethereum is poised to move even higher in the days to come as the key supports hold. He recently claimed that the cryptocurrency could rebound to $ 471 in the next few days:
“DeFi looks pretty neutral or bullish and I think $ ETH looks ready for a 471 resistance tap. Added to longs. It will also add more to 471 break and hold. #achartaday. ”
Chart of ETH's price action over the past few days with an analysis by crypto trader Flood (@FloodXBT on Twitter). Source: ETHUSD from TradingView.com
There are some reasons to be concerned about Ethereum, though.
Analysts recently noted that there is great selling pressure on Huobi’s December futures market:
“Kind of okay, I’m hedging part of my exposure to DeFi vat ETH, huobi whales also have big demands on quarters, so the upside on ETH should be limited.”
Related reading: Tyler Winklevoss: A “tsunami” of capital is coming for Bitcoin
All eyes on Bitcoin
Although Ethereum and DeFi may have the technical characteristics to increase on their own, all eyes should be on Bitcoin. While altcoins have diverged from BTC in the past few weeks and months, Bitcoin still leads the overall directionality of the cryptocurrency market.
Fortunately, most analysts remain optimistic about BTC, which bodes well for altcoins like Ethereum and DeFi coin.
Commenting on the fundamentals of the Bitcoin chain, Willy Woo recently stated:
“Realized Price estimates the average price paid by the market for their BTC. Now at its steepest slope for this cycle, which means capital inflow into #Bitcoin it is at the highest rate since the last bull market. (Higher than last year’s $ 4,000 to $ 14,000 move; the current move is more organic.). For the sake of this comment I’ll define “organic”. Organic price action occurs when BTC’s price closely follows investor capital as it enters and exits. When the BTC price is inorganic it is dominated by short-term derivatives traders. “
Ethereum and DeFi will benefit from continued risk behavior in the cryptocurrency markets.
Related reading: 3 Bitcoin chain trends show a macro bull market is brewing
Featured Image from Shutterstock Price tags: defi, ethusd, ethbtc, eth Charts from TradingView.com Top Trader Expects Ethereum and Defi Remains Bullish on a Short-Term Basis
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