Ether.fi token continued its strong rally, reaching its highest level since February, even as Bitcoin and other altcoins retreated.
Ether.fi (ETHFI) jumped to $1.60, up more than 300% from its April low, giving it a market cap of over $420 million.
ETHFI, a liquid staking and restaking network on Ethereum (ETH), jumped as the total value locked soared to $6.8 billion. This increase made it the fourth-biggest player in decentralized finance after AAVE, Ldo, and EigenLayer. The assets have soared by 52% in the last 30 days.
This growth has led to higher fees collected by the network. It made $3.15 million last week, up from $2.65 million a week earlier. It has already made $2.35 million this week so far.
Ether.fi is using these fees to buy back its tokens, an initiative 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.
ETHFI price analysis
The daily chart shows that the ETHFI price has jumped to $1.6080, its highest level since February this year. This rebound happened after it formed a falling wedge pattern, a popular bullish reversal sign.
It has also moved above the important resistance point at $1.1320, its lowest point on August 5 last year. It has also moved above the 50-day and 25-day Exponential Moving Averages.
The Relative Strength Index has moved to the extreme overbought point of 85. Also, the Average Directional Index has moved to 42. Therefore, it will likely continue rising as bulls target the next point at $3.1282, the highest point in December, which is about 100% above the current level. A drop below the support at $1.1318 will invalidate the bullish outlook.
