Ethereum (ETH) is seeing renewed strength after the US government ended its historic 43-day lockdown. This was an incident that put great strain on investor confidence across global markets.
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ETH price is currently hovering above the $3,400 support zone after a volatile week due to ETF outflows, low trading volume, and intense bearish sentiment.
ETH's price trends to the downside on the daily chart. Source: ETHUSD on Tradingview
The closure resolution boosted market sentiment as ETH regained stability.
The broader cryptocurrency market reacted positively to news of the lockdown decision, with Ethereum rising 3.18% on the day and outperforming Bitcoin with a 3% gain. Analysts currently expect ETH to rise to $3,814 by November 18, which represents a near-term upside of 10.37%.
Despite the improved macro backdrop, Ethereum is still in a difficult technical position. Key supports are at $3,333 and $3,300, while resistance at $3,590 and $3,666 will determine whether ETH can break the current downtrend.
ETF products continue to show weakness, with all nine Ethereum ETFs seeing zero inflows and outflows totaling $107 million, suggesting institutions remain cautious.
Vitalik Buterin Reveals Expansion Outlook As DeFi Matures Globally
Ethereum co-founder Vitalik Buterin added to the optimism this week by outlining a new expansion roadmap and highlighting DeFi’s evolution into a viable global savings tool.
He emphasized that the DeFi ecosystem is now “night and day” more secure compared to 2020, citing better security audits, more robust protocols, and improved user fund recovery mechanisms through innovations such as “walkaway testing.”
At the heart of Buterin’s roadmap is Ethereum’s continued Layer 1 and Layer 2 expansion strategy. With new high-throughput solutions such as rollups, data availability upgrades, and systems already achieving over 10,000 transactions per second, Buterin believes Ethereum is on track to support the next generation of DeFi adoption.
He urged developers to maintain Ethereum’s core values of openness, censorship resistance, and interoperability. Buterin warned that abandoning these principles risks turning Ethereum into a “walled garden,” undermining the ecosystem’s global mission.
Institutional RWA demand surges as ETH breaks above $3,700
A growing bright spot for Ethereum is the explosive expansion of tokenized real-world assets (RWA). There is currently over $200 billion of RWA on-chain, led by major institutions such as BlackRock and Fidelity.
Built natively on Ethereum, the BUIDL fund’s tokenized Treasury product demonstrates the network’s growing importance in traditional finance. Institutional RWA assets have surged nearly 2,000% since January 2024, strengthening Ethereum’s long-term fundamentals amid continued near-term volatility.
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Technically, Ethereum is continuing its downward trend towards $5,000 following a failed August rally. Analysts point out that a decisive break above $3,700 could turn the market structure into a bullish one and reopen the door towards $4,700. This is especially true if macro stability persists after the lockdown.
Cover image by ChatGPT, ETHUSD chart by Tradingview
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