Ethereum is trading at $3,821 today, July 30, with a 53% increase in a month. The rise in Ethereum's price in July is due to several factors such as optimistic sentiment about the altcoin season and demand from institutions. However, a new bullish factor, the rise of DeFi, has emerged, and this could not only help ETH reclaim $4,000 but also push the price up to $5,400.
Ethereum Aiming for $5,400 With Bullish Reversal Setup
Ethereum has formed an inverted head and shoulders pattern. This means a bullish reversal is underway. It has completed the first phase when the price surpassed $2,750.
Now that the $2,750 support level has been confirmed, the second phase is underway. Here, the ETH price could surge 98% to $5,400. This price target is realized from the peak of the lowest point, $1,385 to $2,750.
However, this does not mean that this price uptrend will not face obstacles. First of all, Ethereum will need to overcome the $4,000 mark. Since 2021, ETH has never easily surpassed $4,000. If successful, the next resistance level will be the November 2021 high of $4,800. After that, buyers may target the $5,400 mark.
Thus, even before the rally to $5,400 begins, a 5.3% increase from the current price of $3,821 to $4,000 is a key move to watch. Until this happens, reaching $5,400 remains a distant dream.
This price prediction for Ethereum is also more likely to occur thanks to the RSI indicator. In most cases, a 53% increase will lead to an overbought RSI. However, at 69, the RSI has allowed ETH's price to continue rising. Looking at what happened in Q1 of 2021 and 2024, the RSI did not warn of a reversal until it surpassed 80. Therefore, buyers have not exited the game yet.
The Resurrection of DeFi Could Propel ETH's Uptrend
Needless to say, every altcoin season coincides with the growth of DeFi. This was witnessed in 2021. And it is happening again as the total DeFi TVL surpasses $140 billion for the first time since 2022.
Ethereum's DeFi TVL accounts for 60% of the total $140 billion. Based on this, it is clear that any profits in the DeFi sector will impact Ethereum's price.
NFTs are also rebounding after months of poor performance. According to data from CryptoSlam, NFT trading has increased by 14% in seven days and sales volume has risen by 5.62%.
All of this comes as institutions are rushing into Ethereum. As CoinGape reported, the SEC has given the green light for converting stocks into ETH ETFs. This will significantly contribute to supporting ETH's price as more institutions start seeking investment opportunities.
Therefore, although reaching the $5,400 mark may take some time, this is a feasible target for Ethereum's price to achieve. However, before this happens, ETH may face a significant barrier at $4,000, which has occurred during previous price rallies since 2021.
