Protocol Growth and the Synthetic Dollar Push
Euler Finance is having a moment. After weathering the storms of 2023, the protocol has bounced back with real conviction in 2025. Total borrows recently crossed the $2 billion mark, while deposits climbed above $4 billion—numbers that suggest users are returning in force. Revenue nearly doubled in the third quarter alone, a sign that the platform isn’t just surviving but thriving.
The big news on the horizon is Euler’s plan to launch a protocol-native synthetic USD. The idea is to create a stablecoin that lives entirely within the Euler ecosystem, tying together its lending marketplace and decentralized exchange. If executed well, this could keep more capital circulating inside the protocol rather than leaking out to external stablecoins like USDC or DAI. Details on collateral backing and the peg mechanism are still under wraps, but the ambition is clear: Euler wants to be more self-sufficient and less reliant on outside infrastructure.
For EUL token holders, these developments matter. Growing TVL and borrowing activity usually translate into higher demand for the governance token, especially if fee-sharing or staking mechanisms are introduced down the line. Right now, the fundamentals are pointing up, which provides a solid backdrop for any technical rally.
What the Charts Are Saying
EUL is currently trading around $3.02, up about 4% over the past day. The four-hour Relative Strength Index sits at 66.7—not quite overbought, but close enough that traders should watch for any signs of exhaustion. Moving averages on the same timeframe show support forming near $2.90, with both the simple and exponential averages holding just below current price. That’s a good sign for bulls as long as it holds.
The MACD tells a similar story. The indicator is firmly bullish, with the MACD line sitting above the signal line and the histogram expanding. Momentum is clearly on the side of buyers right now, but these things can flip fast in crypto, especially when a token runs into resistance.
Key Levels to Watch
On the daily chart, the pivot analysis shows resistance building at $2.96, $3.02, and $3.09. Since EUL is already hovering around the $3.02 mark, it’s testing the second resistance level right now. A clean break above $3.09 could open the door to $3.30 or even $3.50 if volume picks up and buying pressure stays strong.
On the flip side, if sellers step in and the rally stalls, support levels are waiting at $2.83, $2.76, and $2.70. A drop back to the $2.80 zone wouldn’t be catastrophic—it would just be a normal pullback after a decent run. But if price breaks below $2.70, things could get messy, with $2.50 becoming the next logical floor.
Risks, Catalysts, and What Could Move the Needle
Looking ahead, the synthetic USD launch is the biggest catalyst on the calendar. If Euler nails the execution and the stablecoin gains traction, it could be a major unlock for both TVL and token price. Continued growth in borrowing and deposits will also matter—users voting with their wallets is the best kind of bullish signal.
But the risks are real. DeFi regulation is tightening globally, and protocols like Euler that push boundaries with synthetic assets could find themselves in the crosshairs. Smart contract exploits remain a constant threat in this space, and any vulnerability—whether in Euler itself or in protocols it integrates with—could tank sentiment overnight. Broader macro conditions matter too. If risk appetite dries up across crypto, EUL won’t be immune.
Technically, the $3.09 to $3.20 zone is the line in the sand. If EUL can break through with conviction, the next leg up looks plausible. If it can’t, expect some chop and a possible retest of lower support. The RSI is getting stretched, so profit-taking wouldn’t be surprising at these levels.
All things considered, Euler Finance is in a stronger position than it’s been in quite some time. The protocol fundamentals are solid, the technical setup is constructive, and the synthetic dollar initiative could be a genuine game-changer. Whether EUL can turn this momentum into a sustained rally depends on execution, market conditions, and whether the bulls can defend the key support zones if things get choppy.
