Ethereum (ETH) is showing renewed strength after the US government lifted a historic 43-day shutdown that had a major impact on investor confidence across global markets.
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ETH price is currently hovering above the $3,400 support zone after a volatile week marked by ETF outflows, declining volumes, and strong bearish sentiment.
ETH's price trends to the downside on the daily chart. Source: ETHUSD on Tradingview
Shutdown resolution lifts market sentiment as ETH regains stability
The entire crypto market reacted positively to the news of the closure resolution, with Ethereum gaining 3.18% on the day, outpacing Bitcoin with a 3% gain. Analysts currently expect ETH to rise towards $3,814 by November 18th, giving it a potential short-term upside of 10.37%.
Despite improvements in the macro environment, Ethereum remains in a technically difficult position. Key supports are located at $3,333 and $3,300, while resistances at $3,590 and $3,666 will determine whether ETH can break the current downtrend.
ETF products continue to be weak, with all nine Ethereum ETFs recording zero inflows and total outflows of $107 million, suggesting that financial institutions remain cautious.
Vitalik Buterin reveals prospects for DeFi to expand as it matures globally
Ethereum co-founder Vitalik Buterin added a touch of optimism to the week by outlining an updated scaling roadmap and highlighting DeFi’s evolution into a viable global savings tool.
He highlighted that the DeFi ecosystem is now safer “day and night” compared to 2020, citing improved security audits, protocol enhancements, and improved user fund recovery mechanisms through innovations such as “walk-away testing.”
Central to Buterin’s roadmap is Ethereum’s ongoing Layer 1 and Layer 2 scaling strategy. With new high-throughput solutions such as rollups, data availability upgrades, and systems that are already achieving over 10,000 transactions per second, Buterin believes Ethereum is on track to support the next wave of DeFi adoption.
He urged developers to maintain Ethereum’s core values of openness, censorship resistance, and interoperability. Buterin warned that abandoning these principles risks turning Ethereum into a “walled garden” and undermining the ecosystem’s global mission.
Institutional RWA demand surges as ETH breaks above $3,700
A silver lining for Ethereum is the explosive growth of tokenized real-world assets (RWA). There is currently over $200 billion of RWA on-chain, facilitated by major institutions such as BlackRock and Fidelity.
BUIDL Fund’s tokenized treasury products are built natively on Ethereum, demonstrating the network’s growing importance in traditional finance. Institutional RWA assets have surged nearly 2,000% since January 2024, reinforcing Ethereum’s long-term fundamentals despite continued short-term volatility.
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Technically, Ethereum remains in a descending channel from its failed August rally towards $5,000. Analysts point out that a decisive break above $3,700 could turn the market structure in a bullish direction, opening the way to $4,700 again, especially if macro stability continues after the closing settlement.
Cover image from ChatGPT, ETHUSD chart from Tradingview
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