Suche
Ethereum investment in Morpho: Is there a risk of the price falling to $3,500?
Ethereum Foundation invests 2,400 ETH in DeFi protocol Morpho as ETH falls to $3,990 – A look at recent developments.
Ethereum investment in Morpho: Is there a risk of the price falling to $3,500?
Ethereum (ETH) is once again in the focus of the cryptocurrency world as the Ethereum Foundation (EF) recently invested 2,400 ETH worth approximately $9.3 million, as well as $6 million in stablecoins, into DeFi lending protocol Morpho. This strategic decision follows a revision of EF's treasury policy aimed at exploring yield generation opportunities via Ethereum-aligned protocols. Despite these actions, the price of ETH fell by 3% on Wednesday and is currently at $3,990.
The EF plans to deposit the invested funds in the yield-generating vaults of Morpho, a protocol described as a pioneer in the field of permissionless DeFi and committed to the idea of Free/Libre Open Source Software (FLOSS). The EF's decision is also a response to criticism from the community, which complained about regular ETH sales to finance the foundation. In the past, EF had already invested millions in lending protocols such as Aave, Spark and Compound to diversify its treasury.
Current market development
With the new strategy, the Ethereum Foundation controls approximately $823 million in ETH assets in its treasury, according to Arkham data. There have been worrying developments in the market over the past 24 hours, including $124.7 million worth of futures liquidations, of which $77.1 million were long liquidations. These liquidations indicate increased volatility that could reinforce ETH’s current downtrend.
Ethereum price fell below the $4,100 support level and is now testing a rising trend line that has been in place since October 10th. A break of this line could theoretically send ETH down to around $3,470. Resistance lies at $4,270, supported by the 50-day Simple Moving Average (SMA). Analysis of the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) histogram show that both indicators are below neutral levels, suggesting dominant bearish momentum.
The Ethereum Foundation remains at the forefront of the development and management of the Ethereum blockchain. These investments in DeFi protocols that align with Ethereum values are part of their effort to promote the growth and stability of the ecosystem. However, given the current market situation, the future price development of ETH is uncertain and requires close monitoring.
For more information about current Ethereum developments and the Ethereum Foundation's recent investments, visit FXStreet