Ethereum Bulls Eye $4,500 and Above as $21.8B DeFi TVL Signals Strong Demand

Key Insights:

• Ethereum tests $4,500, crucial for breakout or reversal, with support at $4,250.
• DeFi TVL of $21.8B signals capital rotation, not outflow, in Ethereum’s ecosystem.
• Ethereum whales increase holdings by 14%, boosting market confidence amid volatility.

Ethereum (ETH) price is currently testing the $4,500 range, with traders closely watching this level for signs of a potential breakout or reversal. Recent data from Ethereum’s on-chain activity and DeFi metrics suggest a strong underlying demand for the cryptocurrency, even as validator queues and staking rotations create short-term volatility.

Ethereum’s Key Price Levels for Traders

Ethereum is testing the $4,500 range, a crucial level for determining the next direction. According to technical analysis from Lennaert Snyder, surpassing this level could trigger long positions and a potential reversal in the market.

The analyst noted that if Ethereum breaks above $4,500, it could confirm a bullish trend. Conversely, failure to hold this level could result in a pullback, with $4,250 acting as the support line for potential longs.

If the price moves below $4,250, the market may see further declines toward $4,000. This scenario could trigger short positions as traders look to capitalize on a continuation of the downtrend.

DeFi TVL and Validator Activity

However, based on Cipher X, Ethereum’s ecosystem continues to see strong support from both staking and decentralized finance (DeFi). The total value locked (TVL) in DeFi stands at $21.8 billion, a notable figure since 2024. 

This shows that capital is actively circulating within Ethereum’s ecosystem, particularly between staking and DeFi activities. The analyst noted that “Capital isn’t leaving Ethereum; it’s rotating between staking and DeFi”, emphasizing the ongoing confidence in Ethereum’s long-term prospects.

The presence of a strong TVL signals that users remain committed to the platform, despite the short-term fluctuations caused by validator churn. Ethereum’s validator activity has seen significant changes recently, with over 1 million ETH entering and exiting the network.

Recent price reaction and Whale Activity

Meanwhile, Ethereum’s whale investors, those holding between 1,000 and 100,000 ETH, have increased their holdings by 14% over the last five months. This surge in buying activity suggests a growing confidence in the asset. 

SharpLink Gaming has added another $176.4 million in ETH to its holdings, bringing the total to $3.6 billion. This increase in large-scale investments signals optimism around Ethereum, as these investors believe the asset will perform well in the future.

With a stable DeFi TVL and an uptick in whale activity, Ethereum’s demand seems strong, even amidst temporary volatility. As of press time, Ethereum is priced at $4,467 with a 24-hour trading volume of $39.5 billion, showing a 1.52% increase in the last 24 hours.