The Ethereum (ETH) price is headed north after a week of uncertainty. Ranked second by Mcap, Ethereum has shown strong signals of recovery after it crashed from the months high of $487 recorded on Wednesday to a new low of $316 by late Saturday.
The blood birth saw the Eth price shed 35 percent against the green buck. With the market showing signs of recovery, the coin changed hands at $356 representing at 12 percent spike. For traders, the loss might look negligible but a further slip might spell doom.
Ethereum (ETH) Price Slip and DeFi
The current price unpredictability in the market is a field day for speculators. What’s more; there are various Decentralized Finance (DeFi) projects that have hit the market distracting the Ethereum ecosystem focus. SushiSwap change of community leadership that saw Chef Noni dump his assets in the market could be a factor.
The $14 Noni holding plus the over $1 billion running in the Sushi protocol is a huge sum to play around with in an experimental project. A Sushi collapse could spell doom for the highly hyped DeFi market. The last three months have seen investors pump more than $8 billion to the project.
Ethereum (ETH) Price and Bitcoin (BTC) Recovery
After Bitcoin (BTC) slip below the $10,000 mark, the largest crypto by market cap appeared back on track. Its recovery acts as the altcoin market influencer. A BTC drop below $10,000 is a major cause of investor panic. Any movement north is a clear indication that a bull run is eminent.
As it stands, the Ethereum boost by DeFi projects has messed the transaction fee and the current network congestion might put off a chunk of investors interested in decentralized finance. This in the long run might slow down adoption rates thus sending the Ethereum (ETH) price further south.