Ether’s price will reach $400 if DeFi keeps eating Bitcoin’s lunch?

Not a day goes by that someone doesn’t tell you something about decentralized finance (DeFi). It is touted as being bigger than the 2017 altcoin boom, and when you look at things like the monster market capitalization of Tether, the recent rise in the price of Chainlink and the DeFi Celsius platform recently exceeded $1 billion in crypto currency deposits, it is clear that these are well-founded claims.

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However, the only problem this potentially presents for Bitcoin is the value proposition for high net worth individuals and institutions considering entering the space.

Do you earn up to 8% interest in USDT in a year, or do you risk losing 11% in Bitcoin in a day?

Using the 1-day BTC chart, it is clear that we are still in a dangerously downward pattern near the top of a channel. The current price is approximately USD 9,150 and the resistance is USD 9,270.

This puts the mid-level support at USD 8,750 and the lower channel support at USD 8,200, suggesting to potential Bitcoin buyers that an 11% drop in channel support is a potential scenario.

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I don’t know about you, but when you are faced with the possibility of losing 11% in one day, compared to gaining 8% in one year on a DeFi platform, risk versus reward, especially for institutions that manage third-party portfolios, the latter certainly seems the safer bet.

But what about the same view on the world’s number two currency by market capitalization, namely Ether? His blockchain houses many of these so-called DeFi projects that have been receiving a lot of attention lately.

Comparatively, Ether (ETH) seems to be trading in the lower part of its current ascending channel on the daily chart. In other words, it paints a picture of 50% up and 3% down.

While this is only a view, and in no way a guarantee of what will happen in the near future, it does indicate to me that Etheruem’s token may be preparing for his return.

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Despite all the FUD and controversy, you can also read on Twitter about the delays of Ethereum 2.0 and one of its co-founders who wants to disassociate himself from it. However, you can’t deny that Ethereum has established itself as being as important as Bitcoin Up in the space of cryptomontages.

Without Ethereum, you wouldn’t have most of the DeFi platforms, smart contracts or the altcoins that could give you crazy returns if you chose the right one, including the beloved Marine Chainlink.