Maintains DeFi Dominance as Price Tests Key Resistance

TLDR

Ethereum is showing resilience above $2,750 despite failing to break the $3,000 resistance, with technical indicators suggesting potential for further upward movement
A prominent crypto analyst Ted Pillows has drawn parallels between Ethereum’s current price action and Bitcoin’s 2015-2017 bull cycle, predicting a possible surge to $10,000
The cryptocurrency maintains strong technical support at $2,720 with a bullish trend line forming at $2,780 on the hourly chart
Ethereum currently leads in DeFi with the highest Total Value Locked (TVL) across all platforms and has a lower inflation rate than Bitcoin
Recent reports indicate increased accumulation by Ethereum whales, suggesting growing institutional confidence in the asset

Ethereum’s price performance has caught the attention of market participants as the leading alternative cryptocurrency maintains its position above $2,750. The second-largest cryptocurrency by market capitalization has demonstrated resilience despite failing to breach the psychological $3,000 barrier in recent attempts.

The digital asset’s price action shows a clear consolidation pattern, with strong support established at the $2,720 level. Technical analysis reveals a bullish trend line forming at $2,780 on the hourly chart, suggesting potential upward momentum building in the market.

Recent price movements have seen Ethereum testing various resistance levels, with particular attention focused on the $2,850 mark. The cryptocurrency has managed to maintain its position above both the $2,750 price point and the 100-hourly Simple Moving Average, indicating underlying strength in the current market structure.

Market data shows that Ethereum recently attempted to push toward the $3,000 level, reaching a local high of $3,021 before encountering selling pressure. The subsequent retracement found support above the 61.8% Fibonacci retracement level, measured from the swing low of $2,616 to the recent high.

Market Analysis

Technical indicators present a mixed picture in the short term. The hourly MACD shows decreasing momentum in the bullish zone, while the RSI has dipped below the 50 mark. However, these technical metrics should be viewed within the context of broader market patterns and whale activity.

Speaking of whale activity, recent reports indicate a notable increase in large-holder accumulation. Ethereum whales have been actively purchasing during recent price dips, suggesting confidence in the asset’s long-term prospects. This accumulation pattern often precedes periods of price appreciation in cryptocurrency markets.

Cryptocurrency analyst Ted Pillows has drawn attention to striking similarities between Ethereum’s current price action and Bitcoin’s behavior during the 2015-2017 bull cycle. This comparative analysis has led to bold predictions about Ethereum’s potential price trajectory, with some targeting levels as high as $10,000 in the current cycle.

Ethereum is destined to go above $10,000 this cycle.

▫️ Highest TVL and stablecoin liquidity.

▫️ Institutional adoption and $ETH accumulation.

▫️ Lower inflation than BTC and 99% of the alts.

It’s time to stop the bull posting about $5K ETH and start talking about $10K $ETH. pic.twitter.com/XnnuxIb9p7

— Ted (@TedPillows) February 19, 2025

The foundation for such bullish projections extends beyond mere technical analysis. Ethereum continues to dominate the decentralized finance (DeFi) landscape, maintaining the highest Total Value Locked across all platforms in the space. This metric serves as a key indicator of the network’s utility and adoption.

Adding to the constructive outlook, Ethereum’s current inflation rate stands lower than Bitcoin’s and most other alternative cryptocurrencies in the market. This reduced supply growth, combined with increasing institutional demand, creates potential for supply-side pressure on prices.

Looking at immediate price levels, Ethereum faces initial resistance near $2,820, with major hurdles at $2,850 and $2,880. A clear break above $2,920 could pave the way for a test of the $3,000 level. Should this resistance be overcome, technical analysis suggests possible moves toward $3,050 and $3,120.

On the downside, several support levels provide a foundation for the current price action. Beyond the immediate support at $2,780, additional buying interest may emerge near $2,720. A break below this level could lead to a test of $2,650, with the next major support zone located at $2,550.

The hourly chart reveals the formation of a short-term bullish trend line, providing additional technical support around the $2,780 mark. This coincides with the 61.8% Fibonacci retracement level of the recent upward move, reinforcing its importance as a technical reference point.

Market observers note the presence of substantial limit orders around key support levels, indicating strong buyer interest in acquiring Ethereum at lower prices. This buying pressure has helped maintain price stability during recent market fluctuations.

Recent data shows increasing institutional involvement in Ethereum markets, with derivatives activity suggesting growing sophisticated investor participation. Open interest in Ethereum futures and options markets has remained robust, indicating sustained professional trader engagement.

Trading volume patterns reveal balanced market activity, with neither buyers nor sellers showing clear dominance in recent sessions. This equilibrium often precedes major price moves in cryptocurrency markets.

The cryptocurrency’s price movements have remained relatively contained within established technical ranges, suggesting a period of price discovery as market participants assess various fundamental and technical factors.

Current market data shows Ethereum trading at $2,742, maintaining its position above key moving averages while market participants await clear directional signals.