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Eth reaches a six-week low. What is next for the biggest DEFI protocol?

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Since reaching its highest price value in 2023, ETH has been trading sideways with no clear momentum in the next price direction.

However, on Aug 1, ETH traded into its lowest price value in six weeks, reaching a low of $1818.

ETH Price-performance

At 5:15 EST, the price of ETH is up by 1.24% and is trading at $1858.27.

The trading volume is over $6.9B indicating a 21% increase in the last 24 hours.

In the last seven days, eth’s price is down by a slight 0.2%, and 4.26% in the last 30 days.

Technical indicators on ETH price action

ETH

ETH/USDT Daily chart Source: Tradingview

The price of ETH is trading above the 200-Day and 50-Day moving averages, indicating an overall long-term bullish market sentiment.

Also, the MACD indicator trading above the signal line with red histogram bars suggests the market could experience a short-term bearish price momentum.

The Relative strength index of 46.81 indicates the market is approaching the overbought zone, which could signal a trend reversal.

The combination of the following indicators is pointing towards a possible temporary price decline for ETH.

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Although, traders shouldn’t consider technical indicators as the only metrics before making trading decisions, as the crypto market is subject to volatility and frequent price fluctuations.

Vital price levels on the ETH daily chart

ETH

ETH/USDT Daily chart  Source: Tradingview

As shown on the ETH daily chart, the price of ETH reached the critical support level of $1820 and has been lurking around the zone for a few days as the price is looking to gain momentum and retest the resistance level of $2k.

However, if the price of ETH fails to trade past the resistance level of $2k, the market will experience a decline back into its support zone again.

A rebound could happen at this level if it revisits, as Strategic traders and whales always buy at the support and try to sell when the price approaches the resistance.

Recent happenings in the ETH ecosystem.

The Total Value Locked (TVL) in the DeFi sector of Ethereum experienced a notable decline, dropping by approximately 8% since this past Sunday.

This decrease, totaling $3.55 billion, was prompted by concerns arising from a significant security breach on the Curve Finance platform.

On Jul 30, a significant security breach occurred, affecting multiple stable pools within the Curve Finance platform.

This incident led to considerable losses for several well-known DeFi projects. The exploit was linked to certain Vyper iteration, a widely used programming language in Ethereum-related projects.

Although the decline of $3.55 billion in DeFi’s Total Value Locked (TVL) was not solely caused by Curve’s Ethereum TVL, the security breach heightened worries about asset safety.

This led numerous users to withdraw their funds from Curve Finance and associated ventures, contributing to a momentary reduction in TVL and fostering uncertainty throughout the DeFi ecosystem.

 

 

 

 

 

 

 

 

 

 

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