A Historic 6 Million Ethereum Acquired Between $1,800 and $2,000: Is a Recovery in Ethereum Decentralized finance on the Horizon?

The price of Ethereum is rising as the $1,800-$2,000 range indicates a robust price floor level for Ethereum. Could ETH reach $3,000 with a revival in DeFi activities?

The ETH digital currency is nearing a reversal of the significant losses experienced on March 10 and is poised to break free from a two-week price range. This change marks a significant moment for buyers who have recently witnessed ETH consistently making lower lows, lagging behind some of the top meme coins to watch for 2025.

As reported by Coingecko, the second largest digital currency is holding strong, having risen over 8% as it trades above $2,000. Should this upward trend persist today, it could rank among the top cryptos to consider buying.

(ETHUSDT)

ETH Price Exceeds $2,000 As Demand Grows

With current prices surpassing $2,000, there is optimism that the digital currency could see further increases, particularly given the significance of the $1,800 to $2,000 area in Ethereum’s price predictions for 2025.

On X, an analyst notes that over three million investors purchased more than six million ETH within the $1,886 to $1,944 range. This level of accumulation signifies that this price segment constitutes a vital price floor level for Ethereum, possibly serving as a rebound point should prices decline further.

More than 3 million investors bought 6.12 million #Ethereum $ETH between $1,886 and $1,944, establishing this as the key base level level at present. pic.twitter.com/UlU6f4LjWu

— Ali (@ali_charts) March 24, 2025

 

For purchasers, this ETH support level is crucial. It could serve as the base for the next series of higher peaks, pushing ETH towards $3,000 and potentially even $4,100. Technically, if the gains from yesterday are validated in the next few days, the ETH price may break above a descending channel.

Should the breakout occur with increasing volume, it might indicate a new trend that could elevate Ethereum towards significant resistance levels in upcoming sessions.

Explore: 10 Coins Expected to Perform Well: Crypto Forecast 2025

ETH Burn Rate Decreases as Demand on Live platform Slows

Nonetheless, even though ETH seems to have found support, on-chain activity has been declining recently.

Observing the volume of ETH sent to burners indicates that there are fewer transactions occurring on-chain—a concerning trend following the Dencun upgrade launched in March 2024.

Post-Dencun, the costs associated with transacting using ETH layer-2 solutions plummeted by 99%. As the level of on-chain activity directly impacts the amount of ETH removed from circulation, fewer Ethereum being burned could lead the currency toward inflation.

Data shared by UltraSoundMoney illustrates that only 53 Ethereum were burned on March 22, marking the lowest point since the implementation of EIP-1559 in September 2021. Most of the burns have originated from ETH transfers, with a significant share being burned due to NFT transactions in 2021.

(Source)

This pattern also underscores a diminished demand for block space. This comes despite ETH developers announcing an increase in the block space limit for the first time in over three years earlier this month.

World Liberty Financial Introduces Stablecoin: Will It Revive Ethereum Decentralized finance?

Unless activity surrounding meme coins on the main layer picks up again, buyer interest on the mainnet is expected to stay subdued.

It remains to be seen whether ETH demand will originate from meme coins, NFTs, or DeFi in the upcoming months. What is evident is that Solana has become the preferred network for meme crypto token developers. Meanwhile, even with decreasing activity, ETH maintains its lead in DeFi.

World Liberty Financial is introducing USD1, a stablecoin, on both ETH and the BNB Chain. The choice to launch on these platforms could provide price floor to prices.

This trend points to the possibility that regulations for crypto and stablecoins in the United States could be proposed and implemented sooner than anticipated. During the Digital Asset Summit on Friday, President Trump called for Congress to ratify stablecoin regulations.

Establishing clear stablecoin regulations is essential, as David Sacks mentioned earlier this year.

Explore: Leading Solana Meme Coins to Consider Buying in March 2025

The post A Ledger 6 Million Ethereum Acquired Between $1,800 and $2,000: Will ETH Decentralized finance Bounce Back? appeared first on 99Bitcoins.