Legendary trader calls DeFi bullish, claiming Ethereum could soon rebound

  • The DeFi sector has been screaming upwards in the past few weeks, with Bitcoin’s continued stability fueling its price action
  • Ethereum, which remains the backbone of this sector, has also been stable and has been closely tracking BTC lately
  • If ETH can push upwards in the short term, this could generate further tailwind that strengthens the DeFi sector and helps the tokens it contains to generate further profits
  • He expressly points out that the ETH could soon go above $ 470 again, which could give the decentralized financial sector much more momentum in the coming days and weeks

Ethereum has given the DeFi sector some strong tailwinds lately, with its recent stability allowing it to act as a strong base for the market to grow.

Bitcoin has firmly led the price action of Ethereum, so it is vital for ETH that BTC stays stable at its current price and doesn’t have too much volatility.

If Bitcoin experiences an independent rally that goes at the expense of altcoins or falls and creates headwinds for the aggregate market, it could slow the growth of “blue chip” tokens in the DeFi sector.

These tokens have seen massive momentum lately, with many seeing gains of 100% or more in the past two weeks.

One trader believes that Ethereum could climb higher soon and help propel DeFi up.

Ethereum is closely tracking Bitcoin while the DeFi market is drifting higher

Ethereum has been stable in the upper $ 400 range for the past few days and weeks.

Earlier this week, buyers attempted to keep the cryptocurrency above $ 470, after which it faced an influx of selling pressure that brought it down to its current price of $ 453.

DeFi tokens have seen immense strength compared to the rest of the market, with many rising well over 100% from their recent lows.

Top trader claims ETH could rebound if DeFi turns bullish

A well-respected trader – known for his seven-digit positions – stated in a recent tweet that he expects Ethereum to rise towards $ 471 in the near future.

He notes that this goes hand in hand with the increasing upward trend in the DeFi sector.

“DeFi looks pretty neutral to bullish and I think ETH seems prepared for a resistance of 471. Added to longings. Will add more to 471 Break and Hold as well. “

Image courtesy Flood. Source: ETHUSD on TradingView.

However, where the next Ethereum trends may depend somewhat on Bitcoin, the chances are that the increasing strength of DeFi tokens will help propel ETH up.

Featured image from Unsplash. TradingView charts.

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