The Ethereum price appeared to stabilize as demand for the altcoin and Decentralized Finance (DeFi) rose steadily. ETH rose to an intraday high of $3,420, which was about 13% above the lowest level this month. This cautious rebound brought its total market capitalization to more than $400 billion.
DeFi rebound boosts Ether
Ethereum is the second-biggest blockchain platform in the world after Bitcoin. This strength is mostly because of its strong foundation in decentralized applications like Non-Fungible Tokens (NFT) and DeFi platforms.
Data compiled by DeFi Llama shows that about 213 DeFi platforms have been built using Ethereum’s technology. Their total value locked is more than $128 billion.
Ethereum is followed by Binance Coin, which has about 87 DeFi projects that have a combined TVL of just $17 billion. Therefore, while many Ethereum-killers like BSc, Solana, and Avalanche have surged recently, Ethereum has a strong market share.
The Ethereum price is, therefore, rebounding because of the performance of the DeFi industry. The TVL of all DeFi platforms in its platform has risen from $110 billion to more than $128 billion. In the past 24 hours, the TVL of most platforms like Curve, Aave, Compound, and Maker have all rallied.
Other metrics back the bullish case for Ethereum prices. First, on-chain data compiled by Glassnode show that the total number of active Ethereum addresses has jumped in the past few days as shown below.
The four-hour chart shows that the Ethereum price has made a modest recovery in the past few sessions. It has risen by double-digits from the lowest level last week.
Still, a closer look at the chart shows that the coin has faced a strong resistance that is shown in red. This falling trendline connects the highest levels since September 7.
Therefore, it can be concluded that a complete bullish rebound has not happened yet and that the coin is not at the buying zone. This will be confirmed if the price clears the 25-day and 50-day EMA and the falling trendline.
