Ethereum saw a massive 6% pump in price after Uniswap debuted its much anticipated Ethereum-based UNI token to the world. The token which currently has a total supply of one billion was an instant success, quickly gathering a lot of interest from crypto traders and early users of the platform.
This widespread interest and demand at one point caused Ethereum gas fees to skyrocket more than 20% higher, pushing the average Ethereum gas fee to about 900 gwei per transaction.
The launch of the token also kindled an Ethereum uptrend that brought in volatility and bullish volume into the market, pushing the price up from the lows of $359.40 to the previous highs of $389.44 before finally cooling off.
This was a 6% gain achieved in less than 24 hours. However, the ETH price has been trending lower ever since.
What Next For The Ethereum Price?
The Ethereum price is currently showing signs of weakness as it continues trading within an ascending channel. This pattern is a bearish pattern and clearly indicates that the sellers are still in full control of this market.
The most important support region to watch out for in the coming days is the $358 previous lows.
A price break and crash below this key horizontal support level could see ETH trending lower in the coming days. And we might even see a price dump as low as the $300 region.
However, there is a high probability that we might see a final price pump in ETH before we see this sell-off kick in. But for this to happen the base of the ascending channel or the $358 horizontal support must hold.
The top of the ascending channel is the most important region the ETH price might pump to in the coming days before finally dumping back down.
What Does This Ethereum Weakness Mean For De-Fi Boom
De-Fi projects are created on the Ethereum blockchain, meaning that they are all directly affected by any price movement on Ethereum in one way or the other.
This current weakness in the ETH price is a red flag, indicating that we might see a slowdown in the current De-Fi Boom. And it only spells doom for the De-fi hype currently taking the crypto industry by storm if the ETH price begins selling-off hard.
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