- Ethereum’s $3,620 support and $3,740 resistance will determine short-term momentum as Bitcoin pairs weaken by 1.9%.
- Ondo’s low sentiment drags prices near $1.50, but long-term interest in DeFi could strengthen its position.
- Aave faces bearish pressure with $336 critical support; volume and sentiment will dictate the next move.
The cryptocurrency market continues to fluctuate with mixed trend indicators from Ethereum ($ETH), Ondo ($ONDO), and Aave ($AAVE) because of rumors about former President of the United States, Donald Trump, planning to launch a new decentralized finance, DeFi. These rumors have led to discussions as to the effect they will have on alternative coins in the market. Experts’ opinion is that such changes may provoke certain shifts on the stock market.
Trump's DeFi platform is coming to pump your favorite alts!!!
— Altcoin Buzz (@Altcoinbuzzio) January 7, 2025
Especially $ETH. $ONDO, and $AAVE.
BOOKMARK THIS!!! pic.twitter.com/3xj1dni0my
Ethereum ($ETH) Shows Modest Gains
Ethereum, ranked second by market capitalization, reported a slight uptick of 0.8%, reaching$3,673.58.According to the 24-hours range ETH worth oscillated in a relatively calm manner between $3,622.05 and $3,737.69.
Huge predictions about Ethereum are being made especially regarding Defi but analysts are quick to point out that gains have been more muted due to lack of other end user adoption. This has led to ETH main support level being located around $3,620 with the main resistance level at $3,740.
Ondo ($ONDO) Faces Pressure Amid Bearish Trends
The native token for Ondo Protocol $ONDO/SOL dropped 0.4% to $1.53. Its 24 hour range was $1.50-$1.59 suggesting low trading volume of the coin. However, when comparing the token with Bitcoin and Ethereum the prices declined by 2.5% and 0.6% respectively.
This makes Ondo still exposed for more downside pressures because of low liquidity and low market sentiment. Indeed, support was found at $1.50 and resistance observed at $1.59. Although it is bearish now we can still see that due to DeFi Ondo is set for long-term interest.
Aave ($AAVE) Sees Declines, Tests Critical Support
Aave, a renowned DeFi platform, was down by 1.1% and closed at $337.49. They traded within a very tight range particularly within the band between $336.91 and $353.91. In more negative news, Aave’s BTC and ETH pairs have dropped 3.1% and 1.2% respectively which is making investors wary about the short-term future of the coin.
A classic concept is that to achieve the bullish breakout, one has to witness the increased volume coupled with positive sentiment. On the other hand, failure to hold support may pull the prices below $330.
Market Implications and Future Trends
If Trump’s rumored DeFi platform emerges, it will focus institutional attention on DeFi space which is positive for tokens such as $AAVE and $ETH. However several challenges can be observed, which include regulatory risk and skepticism in the market. In a bullish case, $ETH price might revisit $3,750, $ONDO might be around $1.60, and $AAVE might get back to $350.
On the other hand, bearish pressure could bring ETH below $3,600, ONDO under $1.48, and AAVE under $330.While market participants wait for confirmation of such rumours, the rest of the extended crypto space looks for emerging signs that can point to the next level of growth or maturity.
