- Summary:
- A look at DeFi market data, ETF performance and meme coin ecosystem shows that Ethereum price will find it hard to repeat its 2021 heroics.
Ethereum price extended its gains to the fifth successive day on Wednesday, trading at $2,373 after rising by 1.3 percent at the time of writing. As Bitcoin comes within touching distance of its all-time high price, Ethereum has been more reserved and is still about 45 percent below its all-time highs of $4,878.
However, by reclaiming the $2,600 mark, ETH signals that it is off the mark, and could sprint faster if Bitcoin breaches its ATH in the coming days. As Ethereum has a wide ecosystem ranging from dApps tp DeFi and meme coins, its easy to see why ETH holders have been waiting for a crypto market rally to catalyse a more aggressive uptrend.
Why Ethereum will struggle to retest all-time-highs
Ethereum’s DeFi Total Value Locked (TVL) has risen by 4.96 percent according to DeFiLlama data. At the height of the 2021 crypto market rally, Ethereum’s TVL rose to $106 billion. The current TVL is at $50.2 billion, which is just below the peak TVL. Notably, it also aligns with the range between the current ETH price and its all-time highs. However, Ethereum has since lost about 43 percent of its market share, making it harder to find strong tailwinds from that front.
Meanwhile, the meme coin market has new kids on the block. Solana’s FunPump and Tron’s SunPump have emerged as popular meme coin launch pads, eating into Ethereum’s key growth front. Finally, ETF inflows haven’t been as upbeat as previously thought, limiting the upsidefor Ethereum. Therefore, as things stand, Ethereum will struggle to retest its ATHs, and if so, it will be long after Bitcoin does it.
Ethereum price prediction
The momentum on Ethereum price calls for further upside above 2,667. With the buyers in contyrol, initial resistance will likely come at 2,696. However, if they strengthen their hold of the market, it could result in a break above that level to test 2,720.
Conversely, sellers are likely to take control below 2,667. The downward momentum will likely find initial support at 2,644. However, if the momentum strengthens, it could break below that level to test 2,618.
