Ethereum (ETH) has spent most of the last few days trying to surpass the resistance near $400. The crypto has managed to break this seller congestion zone in several instances. However, buyers have primarily failed to sustain gains above $415.
After last weekend’s massive 26% crash, ETH price has recovered well over the previous few days. At the time of writing, the altcoin changes hands at $395.8 — just 4% below the year-to-date high.
Analysts now believe that momentum is building for a huge upward move as the $400 resistance comes under constant pressure.
Ethereum Price Will Soon See “New Highs”
Global markets are rallying higher after news spread that the next U.S. stimulus bill is nearing completion. Similarly, the cryptocurrency market is undergoing a jump, and Ethereum has been no exception to this global surge in asset prices.
In the past 24 hours, as per data from CoinMarketCap, the digital asset has gained 2%.
Crypto analyst Michael Van De Poppe sees this price action as a sign to more ETH price upside.
He shared the chart below that shows ETH price has reached the crucial $396-400 horizontal resistance. A break above this zone will likely trigger a move to “new highs” above $415.
Further boosting the Ethereum bull case is a slew of fundamentals, including the growth in decentralized finance (DeFi) and accumulation of ETH by institutions.
As per data from analytics site DeFiPulse, about 800K ETH coins have been deposited in DeFi contracts over the past month alone, which implies that nearly 4% of all ETH in circulation presently sits in DeFi projects.
The absorption of Ethereum into DeFi means that coins are being taken off the market, reducing potential selling pressure.
This phenomenon has prompted Spencer Noon, head of DTC Capital, to conclude that the growth in DeFi is spurring institutional investors to buy Ethereum.
BNB Price Surges with Binance $3M IEO
BNB, the native token of Binance crypto exchange, extended its uptrend in yesterday’s sessions to reach a five-month high.
The upward price move came shortly after Binance Launchpad announced its support for a $3 million initial coin exchange (IEO) for the Sandbox Game.
As it surged higher, the BNB price reached $23.81 for the first time since February 2020. BNB has now gained 15.95 % in the last seven days to change hands at $22.99 during press time.