Ethereum’s TVL Marked a 3-Year High on Thursday- Prices About to Rise?

EH prices remain locked below $200. But the total volume is surprisingly high. Is that an indication of the ETH price rising to $200 again?  

The net value and volume of Ethereum is rising. Thursday, the level rose higher than that in the last 3 years. However, the Crypto community is more interested in the movement of the token’s price.  

The ETH token started reducing from 1st Feb onwards. In a matter of two weeks, the price trot down by 21%. Initially, the coin was having a tough time maintaining its threshold level of $2800 throughout the last 7 days. Finally, that level is breached also. ETH is not trading at a recent low of $2692.  

The plummeted price this week is an indication of the 12% overall downfall in the market cap throughout February. News has been flowing in about a lot of other stablecoins trickling down.  

The total value game  

The whales in the market are still placing their bets on the coin. They are hooked to the dominance that this coin has shown in its net value locked (TVL). Since 2022, the value is the highest now. But that does not mean the price of the coin is going to increase as well.  

Increased deposits can surely slow down the pace at which the price of a coin falls. However, it does not indicate an increase in network activity or the generation of more fees through transactions.  

Bad Days for Ethereum Ahead 

ETH fees are not driving upwards anyhow. The deposits are surely a good sign for the coin as ETH has accrued around 8.1 million USD in the form of transaction fees since February 10th. But on the flip side, the transaction volume indicates a 72% sharp drop compared to what it was 2 weeks ago.  

What drove this downfall was a staggering 37% drop in the transaction volume in the recent two weeks. So, it is better not to go by the monthly accumulated volume. Like its price, the volume of the Crypto can also make a nose dip anytime soon.  

Trader’s takeaway  

Traders will be scathing the horizon to find any rare trace of the script to outperform in the upcoming future. The determination of a good future for Ethereum is barely impossible based solely on its TVL growth.  

Currently, there is no clear direction of movement for this coin. The broader market performance will determine how the prices fare in the upcoming 2 to 3 months. Once the new policies of the new financial year are introduced, we can map whether the market will be bullish or bearish again.