Aave rises 7.15% as DeFi protocol nears 4 million ETH milestone and buyers dominate

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Aave jumps 7.15% to $173.88 today

Highlights

Aave reached a new all-time high in Ethereum deposits, surpassing 3 million ETH and approaching 4 million ETH as of January 4, 2026.
Governance proposals are under discussion to share revenue from non-core protocol activities with token holders and expand into real-world assets and institutional markets.
Aave Labs emphasized that token buybacks are a secondary measure, while the upcoming modular Aave V4 aims to foster innovation and enhance risk mitigation.

Record ETH deposits and new DeFi ventures drive sentiment shift

Aave has set a new record in Ethereum deposits, surpassing 3 million ETH and nearing 4 million ETH as of January 4, 2026, confirming its leading role in Ethereum-based DeFi lending. Recent governance discussions include proposals to share revenue from non-core protocol activities with token holders and strategic plans to expand into real-world assets and institutional markets. Aave Labs also clarified that token buybacks are considered a supplementary tactic, while the upcoming launch of the modular Aave V4 infrastructure is designed to promote innovation and risk mitigation.

Mixed momentum underscored by strong resistance and split indicators

Technical momentum for AAVE is mixed: while the price is supported above MA-20 and close to the MA-50, it remains significantly under MA-200, showing persistent upper resistance and risk. The session’s high volatility is reflected in intraday moves between $161.76 and $174.45, with the price near session highs. Momentum indicators diverge: the MACD and ADX both suggest heightened but bearish trend strength, while oscillators present a split — RSI signals mild weakness (48.55, 'Sell'), yet Stoch RSI (95.32) and BBP (7.07) point to strong intraday buyer dominance and an overbought market.

Sideways momentum expected as buying wanes and oscillators ease

For the next five trading days, AAVE is likely to move within a $165 – $185 volatility band relative to current levels. The probability of further price gains is low (less than 20%), with a sideways pattern favored as intraday buyers lose steam and oscillators cool. A bullish scenario would require a decisive breakout above the MA-50 and Kijun (around $175 – $185), targeting $185 and higher on renewed strength. If AAVE falls below $165, the risk grows for a move toward recent lows as longer-term trend indicators remain negative.

Anton Kharitonov, expert at Traders Union, sees Aave demonstrating firm DeFi leadership and growth in Ethereum deposits but warns that price action still faces long-term resistance. He notes that technical signals send mixed messages — short-term support is present, yet the persistent struggle below the MA-200 keeps the outlook cautious. Momentum is fragile and recent proposed governance changes, while positive, have not removed macro uncertainty. "Until AAVE breaks above $185 with conviction, I remain defensive and would avoid chasing this rally."

Previously it was reported that AAVE is stabilizing after defending the $145–$147 support zone, with price now trading slightly above its short-term EMA cluster but still below the critical 200 EMA resistance near $152. Technical indicators, including an RSI near 61 and neutral on-chain flows, suggest recovering momentum; however, upside follow-through remains constrained as the broader structure stays corrective absent a decisive break above key resistance levels.

Source of Data: AAVE Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.