# Ethereum Cost Rises Before Digital Currency Gathering: What Will Happen?
Ethereum’s valuation has risen 6% over the past 24 hours, climbing back over $2,300, despite certain troubling signals in the decentralized finance (DeFi) space.
According to Defi Llama, the total value secured in Ethereum (ETH) has decreased from a peak of $71 billion in January to $50 billion in February. Furthermore, trading amounts on decentralized exchanges are decreasing as funds move to Layer 2 solutions and other systems such as Solana (SOL). DEX trading amount decreased 11% from $92 billion in December to $82 billion in February.
Ethereum network charges have also suffered, falling from $142 million in January to $46 million in February, indicating reduced demand. The approaching Pectra enhancement, which should make the network quicker and more affordable, may provide Ethereum a temporary increase.
However, it is uncertain whether these enhancements will be sufficient to halt the DeFi decline. Any technical difficulties or postponements could also harm momentum and keep ETH trapped in its current range.
Looking at the technical aspect, Ethereum is still trading below a crucial resistance level of $2,846. The Bollinger Bands are tightening, which frequently indicates an impending breakout. The Relative Strength Index (RSI) is at 41.40, indicating some slight momentum, but a break above 50 would confirm more optimistic strength. Toncoin (TON) Value Forecast for March 26th
Even with the recent valuation increase, low trading amount suggests purchasers are being careful. ETH must break through resistance with force to maintain the rally, or it may fall back down. A strong break above $2,846 could lead to $2,946, while failing to maintain current levels could mean a retest of the $2,200 support level.
All attention is on the White House digital currency gathering on March 7th, which adds another degree of complexity to market sentiment. Recently, Donald Trump suggested the United States should establish a strategic reserve of cryptocurrencies, including Ethereum.
Although a few might regard this as an indication of an upturn, specialists caution that without explicit regulatory directives, the gathering could morph into a “dump the news” situation, perhaps setting off additional market decreases. Essentially, the anticipation regarding the gathering may give rise to dissatisfaction if definitive rules and statutes aren’t established, making traders worried and discard their possessions.
