- Summary:
- A review of DeFi market data, ETF performance, and the meme coin ecosystem shows that Ethereum price will struggle to repeat its 2021 exploits.
Ethereum price extended its gains for the fifth straight day on Wednesday, trading at $2,373 after rising 1.3% at the time of writing. As Bitcoin nears its all-time high price, Ethereum has been more reserved and is still around 45% below its all-time high of $4,878.
However, by reclaiming the $2,600 mark, ETH signals that it is off the mark and could sprint faster if Bitcoin crosses its ATH in the coming days. As Ethereum has a large ecosystem ranging from dApps to DeFi and meme coins, it is easy to see why ETH holders are waiting for a crypto market rally to catalyze a more aggressive uptrend.
Why Ethereum will struggle to retest its all-time highs
Ethereum’s DeFi total value locked (TVL) increased by 4.96% according to DeFiLlama data. At the height of the crypto market rally in 2021, Ethereum’s TVL reached $106 billion. The current TVL stands at $50.2 billion, which is just below peak TVL. Notably, it also aligns with the range between the current ETH price and its all-time highs. However, Ethereum has since lost around 43% of its market share, making it more difficult to find strong tailwinds in this area.
Meanwhile, the meme coin market is welcoming new kids. Solana’s FunPump and Tron’s SunPump have become launchpads for popular coins, eating away at Ethereum’s key growth front. Finally, ETF inflows have not been as bullish as previously thought, limiting the upside prospects for Ethereum. Therefore, as it stands, Ethereum will struggle to retest its ATHs, and if it does, it will be a long time after Bitcoin does.
Ethereum Price Prediction
Ethereum price momentum calls for a further rise above 2,667. With buyers in control, initial resistance will likely reach 2,696. However, if they strengthen their grip on the market, this could result in a break above this level to test 2,720.
Conversely, sellers will likely take control below 2,667. Bearish momentum will likely find initial support at 2,644. However, if momentum strengthens, it could break below this level to test 2,618.
