Ethereum’s pivotal role in the DeFi ecosystem significantly influences its price trends. As the backbone of decentralized finance, Ethereum hosts most DeFi protocols, smart contracts, and dApps, driving demand for ETH to pay gas fees and interact with these platforms. The growth of DeFi, with billions locked in total value, boosts Ethereum’s utility and scarcity, often pushing its price upward during bull markets. However, scalability issues like high transaction costs and network congestion can dampen enthusiasm, leading to price volatility or corrections. Upgrades like Ethereum 2.0 and layer-2 solutions aim to address these, potentially stabilizing and enhancing ETH’s value. Market sentiment, regulatory developments, and competition from rival blockchains also interplay with DeFi’s expansion, making Ethereum’s price a reflection of its dominance and challenges in this thriving ecosystem.