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Legendary Trader Calls DeFi Bullish, Claims Ethereum Could Soon Rally
Cole Petersen | Nov 15, 2020 | 19:00
- The DeFi sector has been screaming higher throughout the past couple of weeks, with the ongoing stability seen by Bitcoin boosting its price action
- Ethereum, which remains the backbone of this sector, has also been stable, closely tracking BTC as of late
- If ETH can push higher in the near-term, it could create further tailwinds that bolster the DeFi sector and help the tokens within it see further gains
- He specifically notes that ETH could soon push past $470 once again, which could help the decentralized finance sector see significantly further momentum in the days and weeks ahead
Ethereum has been providing the DeFi sector with some strong tailwinds as of late, with its recent stability allowing it to act as a strong base for the market to grow upon.
Bitcoin has been firmly guiding Ethereum’s price action, making it vital for ETH that BTC remains steady around its current price and doesn’t see too much volatility.
If Bitcoin begins seeing an independent rally that comes at the expense of altcoins or plunges lower and creates headwinds for the aggregated market, it could slow the growth seen by the “blue-chip” tokens residing within the DeFi sector.
These tokens have seen massive momentum recently, with many posting gains of 100% or more over the past two weeks.
One trader believes that Ethereum could soon rally higher and help send DeFi surging with it.
Ethereum Closely Tracks Bitcoin as DeFi Market Pushes Higher
Ethereum has been stable within the upper-$400 region throughout the past few days and weeks.
Earlier this week, buyers were attempting to hold the cryptocurrency above $470, at which point it faced inflows of selling pressure that sent it down to its current price of $453.
DeFi tokens have been seeing some immense strength relative to the rest of the market, with many trading up well over 100% from their recent lows.
Top Trader Claims ETH Could Rally as DeFi Grows Bullish
One highly respected trader – known for his seven-figure positions – explained in a recent tweet that he expects Ethereum to rally up towards $471 in the near-term.
He notes that this comes as the DeFi sector grows increasingly bullish.
“DeFi looks pretty neutral to bullish and I think ETH looks primed for a 471 resistance tap. Added to longs. Will add more on 471 break and hold as well.”
Image Courtesy of Flood. Source: ETHUSD on TradingView.
Where Ethereum trends next may depend somewhat on Bitcoin, but there’s a chance that the mounting strength seen by DeFi tokens will help send ETH rocketing higher.
Featured image from Unsplash. Charts from TradingView.
