Cryptocurrency Analysis

[IFX_Selena]

Technical Analysis of ETH/USD for June 3, 2021

Crypto Industry News:
The new Nvidia 3070 Ti and 3080 Ti graphics cards will be launched with built-in Ethereum hash rate limiters when they go on sale later this month. Nvidia announced the pending release of new cards during the Computex 2021 live stream, where it revealed the specs and release dates for both models.

Of particular interest to cryptocurrency enthusiasts is Nvidia's decision to market cards with built-in limiters designed to limit their usefulness for Ethereum mining.

The company previously committed to creating a cryptographic card designed to mine Ethereum and other GPU-compatible cryptocurrencies. The move was intended to divert demand from potential cryptocurrency miners, however Nvidia's insistence on releasing all of the latest crypto-cryptographic GPUs suggests that this plan may not be as final as initially expected.

Nvidia recently stated in its Q1 earnings report that it is unable to accurately estimate the demand coming from cryptocurrency miners. This is despite the fact that 3000 Series cards sell up to 300% more than retail cards, amassing millions of dollars in estimated aftermarket sales.


Technical Market Outlook:
Since the ETH/USD pair had broken through the upper channel line around the level of $2,505, the bulls keep pushing the prices towards the key short-term technical resistance seen at the level of $2,914. The new local high during this move up was made at the level of $2,799. Nevertheless, as long as the price is still under the level of $2,914, the bears are still in full control of the market and the next target for bears is seen at the level of $1,729, $1,633 and $1,544. The nearest technical support is still seen at the level of $2,201.

Weekly Pivot Points:
WR3 - $4,688
WR2 - $4,131
WR1 - $2,922

Weekly Pivot - $2,341
WS1 - $1,141
WS2 - $579
WS3 - $181


Trading Recommendations:
Ethereum has lost more than 50% of the recent gains from the lows of March 2020 and now is currently in the counter-trend corrective cycle. The next long-term target for bears is seen at the level of $1,728 (61% Fibonacci retracement of the last wave up) and $1,420 ( January 2018 swing high). The up trend is resumed when the level of min. $3,000 is clearly violated.






Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Peter Brandt: Bitcoin may fall to $21,000 per coin, but a quick recovery should not be expected



Bitcoin has not just been trading sluggishly over the past few days, the most eloquent picture is now taking shape on the 4-hour timeframe (illustration below). The bitcoin quotes are between two trend lines and as they narrow, the volatility of the cryptocurrency also decreases. By and large, BTC is now moving sideways, which is also clearly seen in the illustration. Thus, we believe that today or tomorrow, Bitcoin will try to get out of this triangle, which may lead to a stronger movement than what we have seen in recent days. Thus, it remains only to find out which of the trend lines will overcome the "digital gold".

At the same time, the world-renowned trader Peter Brandt almost completely repeated our conclusions on bitcoin and its prospects. First, Brandt called for investing in bitcoin only the money that investors are willing to lose. Secondly, he named the worst-case scenario for Bitcoin, in which the cryptocurrency could fall to $21,000 per coin. Peter also said that during the last drop in Bitcoin, he reduced the number of his coins by 70%, but is still in long positions. Nevertheless, it seems that the trader himself is inclined to believe that Bitcoin will continue to fall. He asked all those hoping for a quick recovery in the bullish trend, when was the last time Bitcoin hit its high after falling 50%? Brandt also drew attention to the fact that whenever bitcoin began a deep correction, it subsequently amounted to at least 70% of its value. Plus, the fundamental background remains sharply negative for bitcoin low. Thus, not all investors are shouting at all angles that Bitcoin is about to start again to the level of $100,000. There are also those who soberly assess the situation. We have the opportunity to work out not only the growth of bitcoin, but also its fall. Therefore, when the corresponding signals appear, we recommend selling the cryptocurrency.



Technically, bitcoin on the 4-hour timeframe went into a kind of flat. The quotes are still between the two trend lines. Thus, in the near future, the "spring" may straighten and the market will move with renewed vigor in one direction. The only question is, which one? If there is a breakdown of the lower trend line, then the chances of a further fall will increase, at least to the level of $30,500. If the upper trendline is crossed, bitcoin will try to recover to the level of $43,852. These signals can be used to open corresponding positions.






Paolo Greco
Analytical expert
InstaForex Group © 2007-2021