Ethereum

Rally

DeFi

April

Ethereum price has been on a roller coaster ride, reaching $3,000 for the first time since April 2022, before falling back to $2,900 to gather more liquidity.
The number two cryptocurrency has several catalysts behind its stellar performance, such as the&nbsp;<a href="https://coingape.com/ethereum-dencun-upgrade-mainnet-launch-slated-for-march-13/" rel="noopener noreferrer nofollow">Dencun upgrade</a>&nbsp;and the spot ETF, which give it an edge over Bitcoin.
ETH has gained 6% in value in the past week, outshining its peer, which as discussed earlier, faces liquidity at $53,000 – a level that it must clear to keep the uptrend intact.
The bellwether cryptocurrency slipped below $51,000 on Wednesday in a move that could pave the way for a stronger rebound, targeting&nbsp;<a href="https://coingape.com/blog/pre-halving-bitcoin-price-rally/" rel="noopener noreferrer nofollow">pre-halving</a>&nbsp;levels in the area between $58,000 and $60,000.
<h2 class="p1" id="how-surge-in-staking-could-trigger-ethereum-price-rally">How Surge In Staking Could Trigger Ethereum Price Rally</h2>
Ethereum earned the deflationary status after the&nbsp;<a href="https://coingape.com/ethereum-merge-upgrade-goes-live-on-goerli-testnet-eth-eyes-2000-as-whales-accumulate/" rel="noopener noreferrer nofollow">Merge upgrade</a>, with which the network transitioned to a proof-of-stake consensus mechanism from a proof-of-work protocol like Bitcoin.
Since the Merge, the supply of ETH has increased by 1,047,643 according to Greg Magadini, director of derivatives Amberdata. But at the same time, 1,407,200 ETH have been burned or taken out of circulation. Effectively, the net supply of ETH dropped by 359,557.
<a href="https://coingape.com/markets/bitcoin-price-could-hit-500k-but-dont-fear-the-corrections/" rel="noopener noreferrer nofollow">Bitcoin</a>, by contrast, saw its supply grow by 1.7% in the same timeframe, showing that Ethereum is becoming a scarce asset, thanks to the mechanism that destroys a portion of the transaction fees paid to validators.
Moreover, more than a quarter of Ethereum’s supply, or about 30.1 million ETH, is now locked in staking contracts, earning rewards for securing the network.
Cumulatively, the total value locked (TVL) in Ethereum’s decentralized ecosystem is now above $45 billion up from $20 billion at the start of the bull market in Q4 last year,&nbsp;<a rel="noopener noreferrer nofollow" href="https://defillama.com/chain/Ethereum">Defi Llama</a>&nbsp;data shows.
<figure id="attachment_181819" aria-describedby="caption-attachment-181819" style="width: 100%" class="wp-caption aligncenter"><img decoding="async" class="size-full wp-image-181819" src="https://coingape.com/wp-content/uploads/2024/02/Screenshot-2024-02-21-at-21.20.40.png" alt="Ethereum DeFi TVL Hits $45B " width="2254" height="1028" srcset="https://coingape.com/wp-content/uploads/2024/02/Screenshot-2024-02-21-at-21.20.40.png 2254w, https://coingape.com/wp-content/uploads/2024/02/Screenshot-2024-02-21-at-21.20.40-300x137.png 300w, https://coingape.com/wp-content/uploads/2024/02/Screenshot-2024-02-21-at-21.20.40-1224x558.png 1224w, https://coingape.com/wp-content/uploads/2024/02/Screenshot-2024-02-21-at-21.20.40-768x350.png 768w, https://coingape.com/wp-content/uploads/2024/02/Screenshot-2024-02-21-at-21.20.40-1536x701.png 1536w, https://coingape.com/wp-content/uploads/2024/02/Screenshot-2024-02-21-at-21.20.40-2048x934.png 2048w, https://coingape.com/wp-content/uploads/2024/02/Screenshot-2024-02-21-at-21.20.40-150x68.png 150w" sizes="(max-width: 2254px) 100vw, 2254px">
 <figcaption id="caption-attachment-181819" class="wp-caption-text">
 Ethereum DeFi TVL Hits $45B | Defi Llama
 </figcaption>
</figure>
Spikes in TVL affirm the long-term bullish sentiment in the market. Investors are willing to bet on&nbsp;<a href="https://coingape.com/crypto-market-bleeds-reasons-why-bitcoin-eth-sol-xrp-fell-suddenly/" rel="noopener noreferrer nofollow">Ethereum’s</a>&nbsp;long-term bullish outlook by locking their holdings out of circulating supply, essentially reducing sell-side pressure.
This coupled with key market movers like the upcoming Ethereum Dencun upgrade and the hype building around a potential spot ETF points to a parabolic rally in the months ahead.
Ethereum could also ride on the momentum from the Bitcoin halving anticipated in April. Historical price action backs halving as a potential bull run trigger not only for BTC but also for altcoins.
<h2 class="p1" id="ethereum-price-technical-outlook-bullish-or-bearish">Ethereum Price Technical Outlook: Bullish Or Bearish?</h2>
Several key levels are emerging as Ethereum climbs above $3,000. Although the brief climb above $3,000 was a welcome bullish gesture, failure to close above it allowed traders to take liquidity, which may explain the correction to $2,900 on Wednesday.
<figure id="attachment_181818" aria-describedby="caption-attachment-181818" style="width: 100%" class="wp-caption aligncenter"><img decoding="async" class="size-full wp-image-181818" src="https://coingape.com/wp-content/uploads/2024/02/ETHUSD_2024-02-21_22-06-41.png" alt="Ethereum price chart" width="2694" height="1444" srcset="https://coingape.com/wp-content/uploads/2024/02/ETHUSD_2024-02-21_22-06-41.png 2694w, https://coingape.com/wp-content/uploads/2024/02/ETHUSD_2024-02-21_22-06-41-300x161.png 300w, https://coingape.com/wp-content/uploads/2024/02/ETHUSD_2024-02-21_22-06-41-1224x656.png 1224w, https://coingape.com/wp-content/uploads/2024/02/ETHUSD_2024-02-21_22-06-41-768x412.png 768w, https://coingape.com/wp-content/uploads/2024/02/ETHUSD_2024-02-21_22-06-41-1536x823.png 1536w, https://coingape.com/wp-content/uploads/2024/02/ETHUSD_2024-02-21_22-06-41-2048x1098.png 2048w, https://coingape.com/wp-content/uploads/2024/02/ETHUSD_2024-02-21_22-06-41-150x80.png 150w" sizes="(max-width: 2694px) 100vw, 2694px">
 <figcaption id="caption-attachment-181818" class="wp-caption-text">
 Ethereum price chart | Tradingview
 </figcaption>
</figure>
With the price currently pivotal at $2,900, the next vital area is the green band around $2,800. Several four-hour candles close under $2,900 could validate additional dips to this support level, allowing Ether to collect liquidity as investors buy the dip. The 50-day Exponential Moving Average (EMA) backs the demand zone.
The technical structure remains bullish unless the 50-day EMA flips becoming an immediate resistance. Until then, traders may take advantage of dips to gain more exposure to&nbsp;<a href="https://coingape.com/ether-eth-to-outperform-bitcoin-btc-in-coming-months-bloomberg/" rel="noopener noreferrer nofollow">Ethereum price</a>&nbsp;ahead of its next breakout attempt above $3,000.
<h3 class="p1" id="related-articles">Related Articles</h3>
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The post <a href="https://coingape.com/markets/ethereum-price-taps-3000-as-defi-tvl-soars-to-45b-ushering-in-the-altseason/" rel="noopener noreferrer nofollow">Ethereum Price Taps $3,000 As DeFi TVL Soars To $45B, Ushering In The Altseason?</a> appeared first on <a href="https://coingape.com" rel="noopener noreferrer nofollow">CoinGape</a>.

Ethereum Price Taps $3,000 As DeFi TVL Soars To $45B, Ushering In The Altseason?

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