Cryptocurrency Analysis

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Technical Analysis of ETH/USD for 01 January 2021

Crypto Industry News:
The price of ethereum is not only close to a record high. In the context of virtually the entire month, ETH maintains a high of over $ 1,000. On January 4, Ethereum's price closed at $ 1,042. On January 29, at $ 1,380. In the meantime, it never hit less than $ 1,000. As Ethereum researcher Evan Van Ness (using Messari data) noted, these 26 consecutive days are something of a milestone:

"$ETH just closed above $ 1000 for the 26th consecutive day. Until this year, $ ETH had closed above $ 1000 on only 25 non-consecutive days in 2018".

As for 2018, the ETH exchange rate was above $ 1,000 between January 6 and 21. It again exceeded this level in the period from January 24, 2018 to February 1. By December this year, however, the price had dropped to double-digit values.

This time around, the valuation of the cryptocurrency appears to be based on more than just price speculation. It is worth considering the increasingly common applications used in the Ethereum blockchain - DeFi applications.

This can be considered taking into account many factors, and one of the fundamental is certainly volume. During the boom in January 2018, the volume of trading online ranged from $ 1 billion to $ 4 billion. Today's volume is around $ 11.7 billion.


Technical Market Outlook:
The ETH/USD pair is currently trading around the level of $1,313, so there was no major breakout during the weekend. Please notice, the market might be making a triangle price pattern, that had been marked on chart using the golden trend lines. The upper boundary of the potential triangle pattern is seen at the level of $1,438 and the lower boundary - around the level of $1,274. Any clear breakout above or below any of the mentioned levels will result with an increased volatility and bigger market move. The intraday technical resistance is seen at the level of $1,376 and the intraday technical support at $1,274.

Weekly Pivot Points:
WR3 - $1,679
WR2 - $1,589
WR1 - $1,419

Weekly Pivot - $1,318
WS1 - $1,150
WS2 - $1,040
WS3 - $882


Trading Recommendations:
The up trend on the Ethereum continues and the next long term target for ETH/USD is seen at the level of $1,500, so any correction or local pull-back should be used to open the buy orders. Please notice, the up trend starting to go vertical, so the volatility will be higher than average. The bullish scenario is valid as long as the level of $830 is broken.





Sebastian Seliga
Analytical expert
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