Ethereum Charts Bullish Rebound, DeFi TVL Surge Amidst Bitcoin Halving Frenzy

The crypto market is gradually turning bullish after Monday's losses. Ethereum (ETH), the second-largest cryptocurrency, dropped to test $3,200 support, but has since recovered to $3,3379. The current Ethereum price forecast suggests that the path of least resistance is gradually flipping upwards, aiming for highs above $4,000. This is supported by the rising DeFi Total Value Locked (TVL) and a buy signal from the MACD indicator. However, traders are advised to wait for confirmation of the uptrend by breaking above the $3,435 resistance level.

Ethereum Charts Bullish Reversal, DeFi TVL Rebounds Amidst Bitcoin Halving Anticipation

Overview

The cryptocurrency market has witnessed a gradual shift towards bullish sentiment following a bleak start on Monday. Major altcoins experienced significant losses, with Ethereum (ETH), the underlying token of the leading smart contracts ecosystem, plummeting to test support at $3,200. However, the market has since regained footing, and Ethereum is poised to reclaim its upward trajectory.

Bullish Momentum Emerges

Despite the recent volatility, the decentralized finance (DeFi) sector within the Ethereum ecosystem has remained resilient. The total value locked (TVL), a key indicator of the amount of cryptocurrency staked in DeFi protocols, has rebounded to over $50 billion, suggesting renewed confidence in the long-term outlook for the sector. Investors are increasingly choosing to participate in network security by staking their ETH in smart contracts, which generates additional rewards and supports the growth of the ecosystem.

Ethereum Price Forecast

Ethereum's price action is exhibiting a bullish bias, with the token consolidating above $3,300. The 20-day Exponential Moving Average (EMA), a technical indicator that gauges market momentum, provides support at $3,364. The Moving Average Convergence Divergence (MACD) indicator also signals a bullish trend, with the MACD line crossing above the signal line and the green histograms expanding.

Conservative traders may opt to wait for confirmation of the uptrend with Ethereum price breaking above the yellow band and the descending trendline resistance, which would mark a second confirmation of bullish momentum.

Bitcoin Halving Impact

The imminent Bitcoin halving, scheduled to occur within the next few days, is expected to attract considerable interest in the broader cryptocurrency market. While the event primarily impacts Bitcoin, the bullish sentiment associated with it often spills over to other altcoins, leading to rallies and even new all-time highs for some tokens.

Technical Analysis

According to the IOMAP by IntoTheBlock, a significant resistance level exists at $3,435, where approximately 1.85 million addresses hold a combined 4.17 million ETH. Holders may choose to sell at or around this level, creating potential selling pressure.

On the downside, should Ethereum price encounter resistance at $3,450, a sell-off back to $3,200 or even $3,000 could occur. If investors decide to sell in anticipation of the halving, further losses down to $2,930 cannot be ruled out.

Conclusion

The Ethereum market is exhibiting a bullish reversal, supported by a rebound in DeFi TVL and the approaching Bitcoin halving. While some technical hurdles remain, a sustained move above $3,435 could lead to a more pronounced breakout ahead of the halving event. However, investors should exercise caution and monitor market developments closely, as volatility can still be expected in the short term.