Crypto Industry News:
There are three key reasons for the surge in the value of Ether: the dynamic growth of the DeFi sector, the hype around ETH after the start of listing of CME futures, and the declining amount of BTC and ETH on exchanges.
Ether hit $ 2,000 for the first time following the launch of ETH futures contracts on CME earlier this month. These investment instruments are targeted mainly at institutional investors.
Before the aforementioned premiere, the market was convinced that listing the CME contracts would cause a significant drop in the ETH price. The start of CME Bitcoin futures quotations in 2017 coincided, at that time, with the local BTC peak.
However, ETH has grown steadily since then, even exceeding $ 000. The new milestone indicates that there is now significant institutional hype surrounding ETH, as evidenced by the resumption of ETH purchases by Greyscale's Ethereum Trust.
According to data from Dappradar.com, the total locked value (TVL) of the DeFi market is almost $ 50 billion. The term TVL is used to measure the amount of capital that is locked in with any DeFi protocol. For example, if $ 2 billion is used in the loan protocol, this would mean that the TVL protocol would be $ 2 billion.
ETH benefits directly from the high value of TVL in the DeFi market as the cryptocurrency is used as a means of paying transaction fees on the Ethereum blockchain network. The greater the demand for DeFi protocols and services, the greater the benefits of ETH in the market.
Meanwhile, bitcoin's price shows no signs of slowing down. It surpassed the $ 2,000 mark and holds it as a solid support level. One of the reasons for this is the declining amount of BTC as well as ETH available on exchanges which reduces selling pressure.
Technical Market Outlook:
The ETH/USD pair has made a new all time high at the level of $2,035 over the weekend. The rally had ended with a Bearish Engulfing candlestick pattern after the level of $2,021 was hit (161% Fibonacci extension of the last wave up), so the market is now in the corrective cycle. The recent low was made at the level of $1,826 already, so please keep an eye on the technical support at the level of $1,833. Any candle close below this level on the H4 time frame chart or higher would suggest the further correction towards the level of $1,723 or below. The momentum indicator barely hoovers around the neutral level of fifty already.
Weekly Pivot Points:
WR3 - $2,476
WR2 - $2,254
WR1 - $2,101
Weekly Pivot - $1,876
WS1 - $1,724
WS2 - $1,492
WS3 - $1,337
Trading Recommendations:
The up trend on the Ethereum continues and the next long term target for ETH/USD is seen at the level of $2,100, so any correction or local pull-back should be used to open the buy orders. Please notice, the up trend starting to go vertical, so the volatility will be higher than average. The bullish scenario is valid as long as the level of $1,412 is broken.
