Ethereum Price Surges 6% Amid Decline in DeFi Metrics

Ethereum’s price has experienced a 6% surge over the past 24 hours, reclaiming the $2,300 level despite weakening decentralized finance metrics. This recent price movement is a notable development in the cryptocurrency market, particularly for Ethereum investors.

Decline in DeFi Metrics

According to recent data, Ethereum’s total value locked (TVL) fell to $50 billion in February from a peak of $71 billion in January. Additionally, decentralized exchange (DEX) volumes have been declining as capital flows into alternate ecosystems such as layer 2s and Solana. DEX volume fell from $92 billion in December to $82 billion in February, representing an 11% decline.

Ethereum network fees have also decreased from $142 million in January to barely $46 million in February, indicating a decline in demand. This downward trend in DeFi metrics raises concerns about the long-term sustainability of Ethereum’s price growth.

Upcoming Pectra Upgrade

The upcoming Pectra upgrade is expected to enhance network functionality and fee efficiency, which might serve as a short-term catalyst for Ethereum’s price. However, it is still unclear if these upgrades will be enough to stop the decline in DeFi activity. Technical issues or delays could slow down the momentum and maintain ETH within its current range.

Technical Analysis

From a technical standpoint, Ethereum is still trading below the $2,846 critical resistance. A squeeze in the Bollinger Bands suggests a possible breakout. The relative strength index at 41.40 indicates modest momentum, although bullish strength might be confirmed by a move above 50.

Despite the price uptick, low trading volume suggests hesitation among buyers. ETH needs a strong push past resistance to sustain gains, or it risks another pullback. A decisive break above $2,846 may open the path to $2,946, while failure to hold current levels could lead to a retest of $2,200 support.

Regulatory Uncertainty Ahead of White House Crypto Summit

Sentiment remains mixed ahead of the White House Crypto Summit on March 7. Recently, U.S. President Donald Trump proposed the formation of a national crypto strategic reserve, with Ethereum being among the cryptocurrencies. While some see this as a sign of a possible reversal, analysts caution that if enough regulatory clarification is not reached, the summit may become a “sell-the-news” event and lead to further downturns.

Cryptocurrency investors should remain cautious and monitor developments closely. To stay up-to-date with the latest news and trends in the cryptocurrency market, visit Global Crypto News.

Key Points to Consider:

  • Ethereum’s price has surged 6% in the past 24 hours, reclaiming the $2,300 level.
  • DeFi metrics have been declining, with TVL falling to $50 billion in February.
  • The upcoming Pectra upgrade may serve as a short-term catalyst for Ethereum’s price.
  • Technical analysis suggests a possible breakout, but low trading volume indicates hesitation among buyers.
  • Regulatory uncertainty ahead of the White House Crypto Summit may impact Ethereum’s price.
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