ETH eyes $4,300 amid choppy price action

Key takeaways

• ETH is trading around $4k per coin, down 1.7% in the last 24 hours.
• The leading altcoin could rally towards $4,300 soon amid choppy price action.

Ethereum Foundation deploys 2,400 ETH and $6M on Morpho

Ether, the second-largest cryptocurrency by market cap, has been underperforming over the past 24 hours despite the Ethereum Foundation announcing its DeFi expansion to Morpho.

The Ethereum Foundation announced on Wednesday that it is deploying 2,400 ETH, valued at about $9.3 million, and $6 million worth of stablecoins into the decentralized finance (DeFi) lending protocol Morpho.

The team added that the funds will be deposited into Morpho’s yield-bearing vaults as it looks to expand its recent treasury policy. In its announcement, EF stated that, 

“Morpho is a pioneer in permissionless DeFi protocols and consistently demonstrates a commitment to Free/Libre Open Source Software (FLOSS) principles. FLOSS licenses ensure that builders are free to fork and build on existing protocols, making the DeFi ecosystem more resilient and permissionless.”

The Ethereum Foundation is the non-profit that manages research and protocol updates for the Ethereum blockchain. Currently, the foundation holds about $823 million worth of ETH assets in its treasury.

ETH could reclaim $4,300 as price action remains volatile

The ETH/USD 4-hour chart remains bearish and efficient as the price action in recent days has been choppy. The volatile price action resulted in $124.7 million in futures liquidations in Ethereum over the last 24 hours, with another $77.1 million in long liquidations also recorded. 

The momentum indicators are currently weak, but could turn bullish as market sentiment improves. ETH lost the $4,100 support on Wednesday after hitting the $4,300 level on Monday.

The RSI of 47 is below the neutral 50, indicating that the bears are losing control of the market. The MACD lines are also within the negative zone after flashing a sell signal earlier this week. 

If the bearish trend continues, ETH could drop to the support near $3,470 in the coming hours. However, if the bulls keep ETH’s price above $4k, it could rally towards the $4,300 resistance level. An extended rally would bring the 4H TLQ of $4,513 into focus.