Ethereum Price Analysis: ETH DeFi Ecosystem Already Has 3 Million Users

Source: ETH/USD on TradingView

The daily technical chart predicts a downward trend with a bullish fundamental metric of the ETH DeFi ecosystem hitting 3 million users. According to Pivot points (FIB), ETH’s crucial support level is $1828. Conversely, if it rides up, the required resistance level to observe is at $2283. Thus, while the intraday chart forms a Three Black Crows candlestick pattern, predicting prices may drop with high dependability.

The exponential moving average (EMA) composed of 50,100,200-EMA can be a reliable support for currency price changes. However, investors can notice the price drops below the orange line, ensuring a downward trend until the price remains below the EMA-200.

Volume of (7.034K) is beneath the MA of 20-days (30.197K). selling pressure is low in Ethereum, making its price remain in a lower zone. Investors may also witness waning volume bars in the chart, which intimates a big move is expected in upcoming trading sessions.

The CCI indicator gave a (bearish) signal with -118, projecting a sell signal in the coin. Investors may observe a declining slope from -20 to -118. It may plunge in future trading sessions.

ETH Price Drops But DeFi Continues to Grow Exponentially

The number of independent users has tripled since December 2020.

According to Dune Analytics, the total number of unique addresses interacting with DeFi has exceeded 3 million. As of July 13, the analysis tool found 3,004,620 addresses using at least one of the 24 applications tracked by the platform.

A team compiled by crypto enthusiast Richard Chen tracks various native Ethereum protocols to find the total number of unique wallets interacting with the ecosystem. Fully track popular products such as Compound, Uniswap, Aave, Curve, and Balancer.

Ethereum’s leading decentralized exchange Uniswap is the most popular DeFi protocol, with more than 2.3 million unique addresses. The compound is a decentralized currency market, currently ranking second, with 325,000 addresses accumulated since its launch.

Despite the overall market downturn in May, the use of DeFi continues to grow exponentially. For example, it took about 11 months for the number of unique addresses to grow from 100,000 to 1 million, but the subsequent growth rate was even faster.

As Messari research analyst Mason Nystrom pointed out on Twitter, it took 142 days to grow from 1 to 2 million, while it took only 78 days to grow from 2 to 3 million.

Resistance: $2283.0

Support: $1828.0

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