Ethereum Under Pressure: Rising Rates in DeFi Could Trigger a Correction
📉 Borrowing ETH rates on Aave have reached 95% pool utilization, making lending strategies unprofitable. Analysts at 10x Research warn: if the situation does not change, traders will begin to close positions en masse, increasing pressure on the price of ETH.
❗️ Key Points:
— Rising rates make DeFi strategies unprofitable
— A wave of liquidations and closures is possible
— ETH is overbought according to technical analysis
— Historically, Q3 is weak for ETH
⚙️ However, fundamentally:
— Network upgrades are ahead
— Institutional interest remains
— Q4 is traditionally a strong quarter for Ethereum
In the near term, Ethereum may be under short-term pressure, especially if a cascade of liquidations begins. But long-term holders still see ETH as a strong asset with growing infrastructure.
$ETHW