Ethereum Price Hits $3200 as Total Value Locked Rises to $53B
Ethereum price topped the $3,200 level during the early Asian trading hours on Monday, April 22. The last time Ether traded above $3,200 was more than 10 days ago, on April 12, when it reached a high of $3,551 before sinking into an extended downtrend that took its price to $3,013 on April 13.
ETH/USD daily chart. Source: TradingView
Ether climbed from a price of $3,147 on April 22, surging more than 3.3% in the last seven 12 hours ton an intraday high at $3,236.
Ether’s price performance is driven by increasing network activity which has seen its total value locked beginning to rise. lementation of Ethereum Improvement Proposal (EIP) 4844 through the Dencun upgrade.
Data from DeFi aggregator DefiLlama shows the total value locked (TVL) on Ethereum crossed back above the $50 billion mark on April 19. The Ethereum TVL has increased from $49 billiob on April 18 to $53.411 billion on April 22.
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Total value locked on Ethereum, USD. Source: DefiLlama
This surge in Ethereum’s TVL was observed just after the recent breakout of the consolidation zone, which had been a strong hurdle for Ethereum. It shows increased network activity and user engagement on the network, citing a surge in investor interest.
Ethereum price kickstarts an uptrend
A series of higher highs and higher lows have characterized the ETH price action between April 17 and April 22. This has led to the appearance of an ascending parallel channel on the daily chart.
The upward trajectory taken by the moving average convergence divergence (MACD) indicator and the moving averages shows a strong price momentum. The RSI as also began pointing upwards, suggestung that the buyers were returning to the scene.
As such, Ether could continue the uptrend rising above the $3,200 mark to confront resistance from the channel’s upper boundary at $3,253.
A decisive close above this level would confirm a bullish breakout for the largest smart contracts token toward the $3,500 psychological level and later to $4,000.
ETH/USD daily chart. Source: TradingView
On the downside, the RSI shows the market conditions still favour Ether’s downside. As such, if the bears decide o give in to their appetites and book profits at the current levels, ETH could drop from the current price toward the lower boundary of the rising channel at $3,130. A drop below this level would signal the start of a downtrend, with the major support levels at $3,000 and $2,800 providing breathing zones for ETH.
