After a bearish start, Ethereum (ETH) has traded within a narrow range through October, facing resistance at $2,736 and finding support at $2,326.

As the new trading month begins, analysts anticipate a potential rally — contingent on a key condition: ETH must break through its resistance level to confirm bullish momentum.

Why Ethereum May Be Held Down

In an exclusive interview with BeInCrypto, Victor Tan, founder and CEO of TrinityPad — a launchpad empowering investors to support early-stage companies — shared that Ethereum could test the $3,500 to $4,000 range by November. Tan attributed this anticipated growth to recent advancements in Layer-2 solutions and the expanding integration of decentralized finance (DeFi) on the platform.

“ETH could advance toward $3,500-$4,000 by year-end if DeFi adoption continues expanding. Layer-2 technologies have already lowered transaction fees by around 20%, enhancing Ethereum’s appeal,” he said.

However, the recent underperformance of Ethereum’s DeFi sector in the past month has inspired little confidence. Data from DeFiLlama shows that the Layer-1 (L1) network saw only a modest 2% increase in total value locked (TVL) over the past 30 days. In comparison, competing networks gained significant momentum, with “Ethereum killer” Solana achieving a 12% increase in TVL and Aptos surging by an impressive 47% within the same period.

Read more: Ethereum (ETH) Price Prediction 2024/2025/2030

Ethereum’s poor TVL growth reflects the network’s low demand over the past month. Data from Artemis shows that the daily active addre

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Author: Abiodun Oladokun