Ethereum (ETH) trades at $3,821 today, July 30, with a 53% gain in one month. Ethereum price gains in July have been due to multiple factors like altcoin season chatter and demand from institutions. However, a new bullish factor, DeFi resurgence, has entered the picture, and it might not only help ETH reclaim $4,000 but push it to $5,400.
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Ethereum Price Aims for $5,400 With Bullish Reversal Setup
Ethereum has created an inverted head and shoulders. That means there is a bullish reversal happening now. It completed the first stage when the price moved past $2,750.
Now that $2,750 was confirmed as support, the second stage is now at play. Here, ETH price might surge by 98% to $5,400. This price target is realized from the height of the head’s lowest point, $1,385 to $2,750.
However, this does not mean that such a rally will not be without hiccups. Firstly, Ethereum will have to cross above $4,000. Since 2021, ETH has not had an easy time pushing past $4,000. If it manages to do this, the next stop will be at the November 2021 high of $4,800. Afterwards, bulls might target $5,400.
Therefore, even before the rally to $5,400 starts, a 5.3% upswing from today’s price of $3,821 to $4,000 is the main move to watch. Until this happens, getting to $5,400 will remain a pipe dream.
ETH/USDT: 1-day Chart (Source: Tradingview)This Ethereum price forecast is also made more likely to happen because of the RSI. In most cases, a 53% rally causes an overbought RSI. However, at 69, the RSI has left space for the ETH price to extend gains.
Looking at what happened in the Q1s of 2021 and 2024, the RSI did not warn about a reversal until it moved past 80. Therefore, buyers are not out of the game just yet.
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DeFi Resurgence May Drive ETH Rally
It goes without saying that every altcoin season coincides with gains in DeFi. This was seen in 2021. It is happening again now after the total DeFi TVL moved past $140 billion for the first time since 2022.
Ethereum DeFi TVL (Source: DEFiLlama)Ethereum’s DeFi TVL is 60% of the $140 billion. Going by this, it is obvious that any gains in the DeFi space will spill over to Ethereum price.
NFTs are also rising again after months of underperformance. Per CryptoSlam data, NFT transactions have increased by 14% in seven days, and sales volumes are up by 5.62%.
All this is happening when institutions are flocking to Ethereum. As CoinGape reported, the SEC has greenlit in-kind redemptions for ETH ETFs. This will go a long way in helping ETH price gain when more institutions start to seek exposure.
Therefore, while getting to $5,400 might take a while, it is a likely target for Ethereum price to reach. However, before this happens, ETH might face a massive hurdle at $4,000, which was seen in previous runs since 2021.
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Frequently Asked Questions (FAQs)
Can Ethereum price reach $5,400?
Ethereum price can reach $5,400 if it confirms the 98% bullish reversal rally portrayed in an inverted head and shoulders.
What is the most crucial resistance level for ETH?
The most crucial resistance level for ETH is at $4,000. This resistance has held for several years, since 2021.
How will the DeFi resurgence affect Ethereum price?
The DeFi resurgence will likely be bullish for Ethereum considering that the network accounts for 60% of the entire $140B DeFi TVL.
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Ethereum Price Prediction- Bulls Target $5,400 Amid DeFi Revival and Soaring TVL
Ethereum (ETH) trades at $3,821 today, July 30, with a 53% gain in one month. Ethereum price gains in July have been due to multiple factors like altcoin season chatter and demand from institutions. However, a new bullish factor, DeFi resurgence, has entered the picture, and it might not only help ETH reclaim $4,000 but push it to $5,400.
Advertisement Advertisement
Ethereum Price Aims for $5,400 With Bullish Reversal Setup
Ethereum has created an inverted head and shoulders. That means there is a bullish reversal happening now. It completed the first stage when the price moved past $2,750.
Now that $2,750 was confirmed as support, the second stage is now at play. Here, ETH price might surge by 98% to $5,400. This price target is realized from the height of the head’s lowest point, $1,385 to $2,750.
However, this does not mean that such a rally will not be without hiccups. Firstly, Ethereum will have to cross above $4,000. Since 2021, ETH has not had an easy time pushing past $4,000. If it manages to do this, the next stop will be at the November 2021 high of $4,800. Afterwards, bulls might target $5,400.
Therefore, even before the rally to $5,400 starts, a 5.3% upswing from today’s price of $3,821 to $4,000 is the main move to watch. Until this happens, getting to $5,400 will remain a pipe dream.
ETH/USDT: 1-day Chart (Source: Tradingview)This Ethereum price forecast is also made more likely to happen because of the RSI. In most cases, a 53% rally causes an overbought RSI. However, at 69, the RSI has left space for the ETH price to extend gains.
Looking at what happened in the Q1s of 2021 and 2024, the RSI did not warn about a reversal until it moved past 80. Therefore, buyers are not out of the game just yet.
Advertisement Advertisement
DeFi Resurgence May Drive ETH Rally
It goes without saying that every altcoin season coincides with gains in DeFi. This was seen in 2021. It is happening again now after the total DeFi TVL moved past $140 billion for the first time since 2022.
Ethereum DeFi TVL (Source: DEFiLlama)Ethereum’s DeFi TVL is 60% of the $140 billion. Going by this, it is obvious that any gains in the DeFi space will spill over to Ethereum price.
NFTs are also rising again after months of underperformance. Per CryptoSlam data, NFT transactions have increased by 14% in seven days, and sales volumes are up by 5.62%.
All this is happening when institutions are flocking to Ethereum. As CoinGape reported, the SEC has greenlit in-kind redemptions for ETH ETFs. This will go a long way in helping ETH price gain when more institutions start to seek exposure.
Therefore, while getting to $5,400 might take a while, it is a likely target for Ethereum price to reach. However, before this happens, ETH might face a massive hurdle at $4,000, which was seen in previous runs since 2021.
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Frequently Asked Questions (FAQs)
Ethereum price can reach $5,400 if it confirms the 98% bullish reversal rally portrayed in an inverted head and shoulders.
The most crucial resistance level for ETH is at $4,000. This resistance has held for several years, since 2021.
The DeFi resurgence will likely be bullish for Ethereum considering that the network accounts for 60% of the entire $140B DeFi TVL.
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