Just last month Bitcoin (BTC) pulled a surprise and posted gains of up to 42% to break through the $10,000 psychological level. This was the largest daily gain that BTC has posted since 2011.
As a result, the unexpected upside move benefited several altcoins with Ethereum (ETH) surging 17%. But fast forward to late November and the floor is cracking once again.
Amount of Ether locked in DeFi platforms increasing
Also, there was a string of positive developments from the decentralized finance companies. Then DeFi companies are expanding as well as increasing their interest payments and also reducing interest rates on loans on crypto services and products they offer. For instance, other developments include the relaunching of the DeFi platform by Dharma which now supports USDC and DAI. Equally, Nexo a crypto lending platform cut loan rates on direct credit lines to 5.9%.
There is an increase in the amount of ETH locked in DeFi platforms something investors should be cognizant about. Also, most DeFi platforms run on the Ethereum platform. DeFi Pulse recently reported that currently the amount of crypto locked in the platforms is worth $598.5 million and around Ether tokens locked up are around 3.3 million.
Ether benefits from BTC rally
The price action of altcoins has been interesting of late Ether’s 30.29% gain last month backs up the assertion. The week began with a collapse of Bitcoin from $8,050 which shook Ether resulting in a drop in price to establish a double bottom around $152.95.
However before the massive rally on Friday which saw BTC surge 42% and ETH gain 17% the altcoin was in the gray area. It was prodding quietly against the descending wedge’s bottom trendline. The Friday surge sent ETH price above the descending wedge’s trendline and thus setting near a two-week high around $199.61.
Ether is currently at the 50-day moving average following the setting of a 16-day high at around $159.61. This is below the 100-day moving average. However, any moving back to the $200 level will put the price in the upper Bolinger Band and at the 200 DMA. This will align with the decline from $204 witnessed on September 24.