The Ethereum price bounced back in the overnight session as more investors continued buying the dip. ETH rose to $2,815, which was 62% above the lowest level last week. The price is still 35% below the highest level last week.
What happened: Like all digital currencies, Ethereum price crashed last week as investors continued to worry about inflation in the United States and regulations in China. Ether fell to its lowest level since March 29. The price started bouncing back on Sunday as investors rushed to buy the dip. This growth has been helped by the strong performance of the Decentralized Finance (DeFi) industry. The total value locked in the industry has jumped from less than $55 billion on Monday to today’s $63 billion.
Indeed, DeFi-based projects like Uniswap and Maker have been among the best-performing assets. ETH has also jumped because of the relatively strong demand from institutional investors. So, what next for Ethereum prices?
The four-hour chart shows that the Ethereum price has jumped sharply in the past few sessions. The price has formed a V-shape and moved above the 25-day and 15-day exponential moving averages.
The price has managed to move above the 78.6% and 61.8% Fibonacci retracement levels. It is now approaching the 50% retracement level at $2,960. In my last Ethereum price prediction, I identified that as the key level to watch going forward.
Therefore, in my view, the next key point to watch is the $3,296, which is along the 38.2% Fibonacci retracement level. However, a drop below the 61.8% retracement at $2,626 will invalidate this prediction.
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