Ethereum Price remains a hot topic as it stays above $2,300 despite recent DeFi disruptions. The $292 million exploit of Kelp has sent shockwaves through the DeFi ecosystem, impacting major protocols like Aave.
DeFi’s Ripple Effect on Ethereum
The DeFi ecosystem has been under scrutiny following the KelpDAO exploit. Ethereum, as the leading DeFi blockchain, has seen over $10 billion in losses from DeFi platforms since the week’s onset. Despite this, Ethereum’s price remains resilient.
Understanding Ethereum’s Fee Surge
With the Ethereum London upgrade, a spike in total fees has occurred, reducing ETH’s circulating supply. This surge correlates with increased network activity post-KelpDAO exploit, which saw significant capital moving through THORChain.
According to DefiLlama, Ethereum’s total value locked (TVL) has decreased by approximately $10.7 billion to $44.7 billion over the past five days. Active addresses have also seen a decline.
Factors Supporting Ethereum Price Stability
Despite the challenges, Ethereum’s price stability above $2,300 is attributed to a few factors. The US’s extension of its ceasefire with Iran has fostered positive market sentiment. Additionally, BitMine Immersion Technologies continues to bolster its Ethereum holdings.
On-chain data shows BitMine has received 100,000 ETH from BitGo and staked an additional 93,600 ETH, raising its total to 3.489 million ETH.
Ethereum Price Forecast
ETHUSD’s 4-hour chart suggests a bearish yet efficient market. ETH maintains a constructive bias above the 20-day and 50-day EMAs at $2,275 and $2,226, respectively. Momentum indicators like the RSI and Stoch suggest potential upward movement.
The 14-day RSI is neutral near 53, while the Stoch is mid-range, indicating consolidation within an upward phase. Resistance is expected at $2,388, and a breakthrough could target $2,500. Support is found at $2,308, with further support at $2,211 and $2,107.
