Morpho (MORPHO), a leading decentralized finance (DeFi) protocol, has seen its token price hover around $2, indicating potential for a breakout following a strategic decision by the Ethereum Foundation. Recent investments by the Foundation bolster Morpho’s standing in the DeFi sector, setting the stage for bullish prospects.
Ethereum Foundation Invests in Morpho’s Growth
On October 15, the Ethereum Foundation made headlines by depositing 2,400 ethers (ETH) into Morpho’s vaults. Alongside this, a notable $6 million was injected in stablecoins, demonstrating the Foundation’s commitment to fostering innovation within the DeFi landscape.
This strategic investment reflects the Foundation’s ongoing support for open-source principles and underlines Morpho’s significance in liquidity provision and yield generation within the sector. Previous investments in platforms like Spark, Aave, and Compound further illustrate their dedication to bolstering DeFi.
New deposits from @ethereumfndn into Morpho
🦋 1,200 ETH into @gauntlet_xyz WETH Prime Vault
🦋 1,200 ETH into @steakhousefi ETH Vault
🦋 2M USDC into @gauntlet_xyz USDC Prime
🦋 4M USDC into @SteakhouseFi USDC— Morpho 🦋 (@MorphoLabs) October 15, 2025
In a recent update presented at Morpho’s Vault Summit, the team remarked, “Vaults are the future of an open, transparent, and productive financial system – what stablecoins have done for money, vaults will do for asset management.”
MORPHO Price Outlook: Targeting the $2 Resistance Level
MORPHO is currently trading at approximately $1.93, reflecting a 3% increase, as bullish traders eye further gains. This uptick follows the support from the Ethereum Foundation.
While a significant bullish sentiment has yet to fully materialize, analysts predict a potential breakout above the psychological $2 barrier. The influx of capital and increased visibility may enhance demand for Morpho’s unique lending architecture.
The governance model promotes user participation through the MORPHO token, with prices potentially aiming for the all-time high of $4.17 reached in January 2025. Following a dip to a historic low of $0.63 in the market downturn of October 11, 2025, MORPHO has rebounded over 200%.
If MOH maintains its momentum and closes above $2, targets around $2.85 could emerge as an initial bullish signal, with the $3 mark also within reach. However, short-term volatility remains a risk, with critical support levels seen at $1.30 and $1.00.
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