Ethereum (ETH) price is one of the biggest gainers in the cryptocurrency market today, April 14, after gaining 9.27% in 24 hours. The gains come as the market challenges tensions in the US-Iran conflict. Furthermore, the US Securities and Exchange Commission (SEC) has issued new guidance on decentralized finance (DeFi), and this is also fueling the rise of ETH. With a rounded bottom forming and technical indicators turning bullish, can Ethereum price break above the $3,000 level? Let’s explore.
The SEC updates DeFi regulations amid ETH TVL decline
A The latest report issued by the SEC It could boost the adoption of DeFi products and lead to a rise in Ethereum prices after the regulator said that some platforms that enable DeFi transactions do not have to register as a broker or dealer. Some of these platforms include wallet extensions and mobile apps.
The development has sparked interest in the cryptocurrency community, with users saying it shows the SEC is moving forward in providing regulatory clarity amid the US Congress’ delay in passing the bill. The law of clarity.
“The SEC is already preparing to implement a CLARITY-like system, but CLARITY still needs to be law, because employee guidance is not law, commissions change, and future officials could reverse it unless Congress codifies it,” said Alex Thorne, head of research at Galaxy.
The SEC’s focus on regulating the DeFi space comes at a time when… Ethereum’s DeFi TVL decreased significantly. Data from DeFiLlama shows that this metric has fallen from the 28.39 million ETH recorded on February 6 to 23.53 million ETH at press time. This means that the minimum income decreased by $4.86 million, equivalent to about $11 billion, within two months.
New DeFi regulations may eventually fuel the upside Long-term Ethereum price prediction If they revive Ethereum’s TVL.
Ethereum price forecast where the bullish pattern indicates a rise of $3,000
Ethereum price has created a rounded bottom, which indicates that the momentum is slowly shifting from bearish to bullish. There has been a steady recovery since late March, with the price rising from a low of $1,938.
The rally that has seen the price of ETH maintain levels above $2,000 over the past two weeks stems from buying activity. As seen on the daily chart, the RSI has been gradually rising, with higher highs confirming that the upward momentum is growing strongly. Moreover, even with the gradual rise, the RSI is still not at overbought levels, showing that there is room for ETH to move higher.
The neckline of the round bottom at $2,396 forms the major resistance level that will determine the next direction for ETH price. If Ethereum breaks this resistance and closes several times above it, it could start to rise 23% to around $3,000.
The EMA also supports the potential for further gains with the 20-day EMA crossing above the 50-day EMA. This indicates that short-term momentum favors the bulls. If this bullish breakout fails, and ETH price faces resistance near $2,396 again, it will show sellers placing sell orders at this price and driving a trend reversal.
