A top trader has predicted that Ethereum could rally soon as he describes DeFi as bullish. Ethereum has been fueling the progress of the DeFi sector recently. With its recent price stability, slowly tailing Bitcoin’s trend, permits it to act as a solid base for the market to flourish.
Bitcoin has been firmly guiding Ethereum’s price action, making it vital for ETH that BTC remains steady around its current price and doesn’t see too much volatility.
If Bitcoin begins seeing an independent rally that comes at the expense of altcoins or plunges lower and creates headwinds for the aggregated market, it could slow the growth seen by the “blue-chip” tokens residing within the DeFi sector.
These tokens have seen massive momentum recently. With many posting gains of 100% or more over the past two weeks.
One top trader believes that Ethereum could soon rally higher and help send DeFi surging with it.
ETHEREUM CLOSELY TRACKS BITCOIN AS DEFI MARKET PUSHES HIGHER
Ethereum has been stable within the upper-$400 region throughout the past few days and weeks.
Earlier this week, buyers were attempting to hold the cryptocurrency above $470. At this point, it faced inflows of selling pressure that sent it down to its current price of $453.
DeFi tokens have been seeing some immense strength relative to the rest of the market, with many trading up well over 100% from their recent lows.
TOP TRADER CLAIMS ETH COULD RALLY AS DEFI GROWS BULLISH
The top trader notes that this comes as the DeFi sector grows increasingly bullish.
“DeFi looks pretty neutral to bullish and I think ETH looks primed for a 471 resistance tap. Added to longs. Will add more on 471 break and hold as well.”
Image Courtesy of Flood. Source: ETHUSD on TradingView.
Where Ethereum trends next may depend somewhat on Bitcoin. But there’s a chance that the mounting strength seen by DeFi tokens will help send ETH rocketing higher.
This article is sourced from:https://bitcoinist.com