Ethereum (ETH) opens the market a percentage lower as price dips below the psychological $250 USD mark. The bearish pattern follows on the decentralized finance (DeFi) market, which witnessed a $200 million deflation of funds from the platforms in the past ten days. Can the second largest cryptocurrency bulls hold on to $250 preventing a possible dip to $238 support levels?
DeFi products shed $200 million in a fortnight
Since the bZx exchange saga broke, the field of decentralized finance has suffered hard, losing over $200 million in locked funds value in the period since. On Feb 15, total value locked in DeFi products on both Ethereum and Bitcoin hit an all-time high of $1.219 billion USD, as Ethereum’s price recorded a yearly high of $288.00 USD.
The relation between the ETH token and TVL on DeFi is also prevalent in bearish times but this time, the DeFi industry is suffering a bit more. While the number of ETH tokens locked on DeFi reduced as the TVL shot up to ATH, the reverse is not happening as ETH plummets below the $250 USD region.
On Feb. 17, the number of ETH tokens locked on DeFi amounted to 3.072 million tokens. The number has since plummeted over 8% in that period to approx. 2.8 million ETH.
As Ethereum bulls struggle to maintain the price above the $250 mark, a quick turnaround in DeFi value will be needed.
Will Ether survive the sub-$250 levels?
ETH/USD currently changes hands at a $248 dollar rate across major exchanges signaling a possible completion of the triple top formation on the 4-hour charts. A drop below minor resistance levels at $245 and $238, does not look good for the ‘smart contract’ token as bears gain momentum.
A bounce off these support levels will be key for bulls to regain their push towards $300. However, the relative strength index breaking below the sell signal level at 41 signals a push further towards key support levels.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
Been in the field since 2015 and he still love everything blockchain and crypto! FC Barcelona fan. Author and journalist. Follow him at @lujanodera.