Ethereum Price Prediction: ETH Faces Rejection at $2,817 Despite $120M DeFi Initiative by Ethereum Foundation

·

Ethereum Price Today: $2,650

Ethereum (ETH) dipped 1% on Thursday after encountering resistance at the $2,817 support level. The Ethereum Foundation’s capital allocation to DeFi protocols failed to catalyze price movement, as macroeconomic factors continued to weigh on crypto markets.

Ethereum Foundation Allocates 45,000 ETH to DeFi Protocols

The Ethereum Foundation (EF) announced deploying 45,000 ETH (worth ~$120M) across multiple DeFi platforms:

"We're grateful for the Ethereum security community’s efforts to make DeFi secure and usable!"
— Ethereum Foundation (@ethereumfndn) February 13, 2025

At current yields (~1.5% APY), EF’s positions could generate ~$1.8M annually, bolstering its treasury without liquidating assets.

This move follows criticism from crypto community members accusing EF of insufficient protocol support. In response, EF committed to deploying ~50,000 ETH to boost DeFi activity on Ethereum.

👉 Explore Ethereum’s latest DeFi integrations

Meanwhile, Cboe filed with the SEC to permit staking in 21Shares’ Core Ethereum ETF (CETH). If approved, staking could attract more inflows to ETH ETFs. Analysts like Standard Chartered predict ETH could rally to $14,000 by year-end if staking-enabled ETFs gain traction.

Ethereum Price Analysis: Rejection at $2,817

Indicators:

Without a catalyst, ETH may continue consolidating below $2,817—a level previously breached only by major events (e.g., U.S. election volatility).


FAQs

What is Ethereum?

Ethereum is a decentralized blockchain supporting smart contracts and dApps (DeFi, NFTs, DAOs). Its native token, ETH, is the second-largest cryptocurrency.

How do smart contracts work?

Self-executing code that automates agreements when predefined conditions are met.

What is Ethereum staking?

Staking involves locking ETH to earn rewards and secure the network under its PoS consensus (since The Merge in 2022).

Why are gas fees high?

Gas (transaction fees) spikes during network congestion as validators prioritize higher-paying transactions.

👉 Learn how to stake ETH securely