Ether.fi (ETHFI) token continues its strong rally, reaching its highest level since February

Ether.fi (ETHFI) jumped to $1.60, up more than 300% from its April low, giving it a market cap of over $420 million.

Ether.fi (ETHFI) token continued its strong rally, hitting its highest level since February, even as Bitcoin and other cryptocurrencies pulled back on Thursday.

The token, which is used for liquid staking and restaking on Ethereum (ETH), jumped to $1.60, giving it a market cap of over $420 million. It is also the fourth-biggest player in decentralized finance after AAVE, Ldo, and EigenLayer. The assets have risen by 52% in the last 30 days.

This growth has led to higher fees being collected by the network, with Ether.fi making $3.15 million last week, compared to $2.65 million a week earlier and $2.35 million so far this week.

Ether.fi is using these fees to buy back its tokens, an initiative that is intended to support token value. In an X post on Thursday, the developers announced plans to repurchase ETHFI tokens worth 103 ETH using last week's fee revenue.

In a recent update, the team stated that buybacks will occur weekly using withdrawal fees and monthly using all other protocol revenues. All repurchased tokens will be distributed to staked ETHFI holders.

"103 ETH of revenue from the prior week will be used for $ETHFI buybacks. Buyback execution update coming soon."

ETHFI price analysis

The token price rose to a high of $1.6080, marking its highest peak since the beginning of February. This surge followed the formation of a falling wedge pattern, a recognized bullish reversal sign.

Moreover, the price broke through the significant resistance level at $1.1320, the lowest point reached on August 5 last year, and also crossed the 50-day and 25-day Exponential Moving Averages.

The Relative Strength Index soared to an extreme overbought point of 85, while the Average Directional Index stands at 42, indicating a strong bullish momentum.

As a result, ETHFI is likely to continue its upward journey, with bulls aiming for the next resistance at $3.1282, the December high, which is approximately 100% above the current price level.

However, a decline below the support at $1.1318 could invalidate the bullish outlook and suggest a continuation of the bear market.

On the other hand, Bitcoin fell by 1.8% to $60,000, pulling it further away from the two-month high of $67,800 that it reached last week. Ether dropped by 0.8% to $1,640.

Among other noteworthy movers, Solana slid by 4.4%, extending its retreat from Monday's two-week high. A rebound in the cryptocurrency market this year has been driven in part by anticipation of the upcoming Ethereum blockchain upgrade, known as "Merge," which is set to introduce a new consensus mechanism for the network.

The post Ether.fi token hits highest level since February as Bitcoin pulls back appeared first on Chain Teller.

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