Over the weekend, the ETH price showed strength despite facing a firm rejection at the critical $400 resistance.
The popular crypto managed to surge as high as $415 on Saturday before it plummeted to lows of $300. Luckily, buyers quickly recovered the bulk of these losses to drive prices up towards $385.
In today’s early trading, the second-ranked crypto on CoinMarketCap managed to brush shoulders with $400 after a stable Sunday session where it consolidated gains above $380.
At the time of this article’s writing, ETH is changing hands for $395.2, just below the stubborn resistance of $400. This new price has temporarily cut short the bullish grip that was forming in the daily chart.
Support at $395 remains weak amid heavy selling pressure established at this price level. However, the bulls look set to stage another attack at $400.
If this crucial resistance level is broken in forthcoming sessions, ETH will gain some much-needed momentum to encourage buyers who are watching from the sidelines to join the market.
Fortunately for buyers, ETH looks likely to break above $400 according to analysts and fundamental trends.
ETH Price Could Rally to $440
Crypto analysts are now projecting that ETH’s ongoing consolidation phase is likely to result in an intense uptrend.
Analyst CryptoCactus spoke about the ETH price outlook, explaining via the chart below that the cryptocurrency is well-positioned to move towards $440 in the near-term.
However, he insisted that such an uptick is dependent on the altcoin closing above the $370 level on both daily and weekly timeframes.
The signs of a massive breakout in ETH markets were echoed by crypto analyst Byzantine General. He noted that Ethereum’s recent price action resembles a consolidation pattern seen in May of last year.
A sharp price pump followed that consolidation trend. Byzantine predicted that ETH price will see a similar uptick this time around.
Uptrend to Be Fuelled by DeFi Interest
Further validating an imminent ETH bullish scenario is the prospect of massive inflows of funds from institutional investors looking to capitalize on Ethereum-based DeFi projects.
Spencer Noon, the head of DTC Capital, noted via Twitter that some fund managers and institutional traders he spoke to wanted in on the DeFi explosion being seen on the crypto market. He explained:
“The herd is coming. They’re excited about DeFi but new to it, so they’re buying $ETH first.”