- Ethereum struggles to break past $2,817 despite the Ethereum Foundation’s $120 million DeFi investment.
- Weak momentum and a lack of catalysts keep ETH range-bound, with risks of dropping to $2,200.
Ethereum (ETH) struggles to break past the $2,817 level. Despite the Ethereum Foundation deploying $120 million into DeFi protocols, the crypto market remains stagnant. Macroeconomic factors and a lack of catalysts continue to suppress ETH’s price action.
Ethereum Foundation’s DeFi Investment Fails to Boost ETH
The Ethereum Foundation (EF) recently allocated 45,000 ETH—worth around $120 million—across key DeFi platforms. This includes:
- 30,800 ETH to Aave, with 20,800 ETH going to Aave’s Core market and 10,000 ETH to Aave Prime.
- 10,000 ETH to Spark, a lending protocol under MakerDAO.
- 4,200 ETH to Compound, another top DeFi lending platform.
The move aims to support DeFi activities while generating a passive yield of around 1.5%, potentially earning the EF $1.8 million annually. However, the initiative failed to trigger a positive price reaction for ETH.
Cboe Seeks SEC Approval for ETH ETF Staking
In another significant development, Cboe filed with the SEC to allow 21Shares’ Core Ethereum ETF (CETH) to enable staking. If approved, this could attract more institutional investors and boost ETH’s inflows.
Standard Chartered previously predicted ETH could hit $14,000 by year-end if ETH ETF staking gains regulatory approval. However, until the SEC makes a decision, ETH remains stuck in a tight range.
Ethereum Faces Technical Resistance at $2,817
Ethereum saw $37.29 million in futures liquidations in the past 24 hours, with long positions accounting for $22.02 million. The rejection at $2,817 was reinforced by the 14-day Exponential Moving Average (EMA).
ETH now risks further downside within a descending channel. If it fails to hold support, the price could slide toward $2,200. A decisive move above $2,817 could shift momentum and allow ETH to test the upper boundary resistance of the channel.
Indicators Signal Weak Momentum
Technical indicators reflect a struggling market:
- RSI and Stochastic Oscillator remain below neutral, indicating bearish dominance.
- MACD shows receding histogram bars, suggesting fading bearish pressure.
Without a strong catalyst, Ethereum may remain range-bound below $2,817. The market awaits fresh developments, such as SEC approval for staking or broader macroeconomic shifts, to trigger a breakout.
