3 key indicators predicting Ethereum’s potential upswing: why Ether is prepped for a rally

3 key indicators predicting Ethereum's potential upswing: why Ether is prepped for a rally

In recent time, we’ve seen an increased interest in one particular digital currency: Ethereum. Despite some turbulence, Ethereum, better known as Ether, is showing serious potential for growth. In light of recent developments and technical indicators, the price of Ether is looking ready to rally higher. Let’s delve into the three key reasons why this altcoin might just be on the brink of an ascent.

Strong support at $1,750

One major indicator of Ether’s potential upswing is its significant support at the $1,750 mark. This support has held steadfast, despite pressure from sellers. A strong support level such as this tells us that buyers are willing to step in and purchase Ether at this price point, combating any downward trends. This careful balance between buying and selling activity reveals a relative stability that could ultimately create a springboard effect, propelling Ether’s price higher.

Rise in total value locked in Decentralized Finance

Another reason for optimism stems from the world of Decentralized Finance, or DeFi for short. The total value locked in DeFi, a vast majority of which is built on the Ethereum network, has seen a significant surge. To put this into perspective, the total value locked in DeFi has just recently exceeded $40 billion, a substantial rise from $15 billion at the end of 2020. This increase indicates a growing appetite for Ethereum-based applications, indirectly boosting confidence in Ether’s future progress.

Growth potential of DeFi

But why does an increase in the total value locked in DeFi matter? DeFi is turning out to be a game-changer in the financial industry. Leveraging blockchain technology to eliminate intermediaries, DeFi applications offer an alternative to the traditional financial ecosystem. For Ethereum, increased usage of its blockchain for DeFi adds value to its network, contributing to the upward pressure on Ether’s price.

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Upcoming network upgrading

Also adding to the positive outlook for Ether is the long-awaited Ethereum 2.0 upgrade. This upgrade is aimed at improving the scalability and security of the Ethereum network. Upon implementation, this could potentially catapult Ether’s price, as higher scalability would better accommodate a surge in transaction volume. This, combined with enhanced security, would further increase user confidence in the Ethereum network, thus bolstering the value of Ether.

These are undoubtedly exciting times for Ethereum. With strong support at $1,750, the rise in total value locked in DeFi, and the upcoming network upgrade, Ether looks ready to rally higher. However, as much as the indicators are pointing towards an uptrend, it is crucial to remember that the crypto world is inherently unpredictable. Tokens can skyrocket or plummet on the slightest of news, implying one has to tread cautiously. Always bear in mind that risk management and due diligence are the cornerstones of successful cryptocurrency investment.

And above all, approach the crypto world with a healthy dose of critical thinking. While the indicators are positive for Ethereum now, the scenario could change quickly. So, stay informed, stay smart, and keep your crypto journey safe and profitable. Good luck!

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