Ethereum ETH/USD, the second largest cryptocurrency by market cap, is down 7% in the past 24 hours after recovering as much as 30% in recent weeks.
The DeFi contagion — a slang used for crashing domino effect on DeFi products — has shortened ETH’s recovery as the token now trades more than 70% below its record high with further signs of decline.
Source: TradingView ETH/USD
As observed, ETH has managed to maintain its trend similar to Bitcoin BTC/USD, clocking a significant drop from June 17, followed by a sudden trend reversal on June 19, which lead to it surging from $880 to $1206 before moving sideways and dropping to its current position at $1085.
With the global crypto market cap down 5%, ETH has lost over $4 billion in the past 24 hours.
On-chain data from CryptoQuant shows the number of active wallets used to send and receive ETH and the total number of transactions has decreased by 25% and 3%, respectively, with over 3.4 million long ETH positions liquidated in the last 24 hours.
Ethereum’s DeFi trading volume has also decreased by 25% in the last 30 days with no bullish gains recorded in the last surge.
Accounting for the current market conditions, it’s too soon to determine ETH’s trend — bounce back will face resistance on $1,300 and $1,500 levels while its support lies way below its current price at $880 and $720.