Cryptocurrency Analysis

[IFX_Selena]

Technical Analysis of ETH/USD for July 2, 2021

Crypto Industry News:
Twitter's CEO Jack Dorsey has again dismissed the suggestion to buy Ethereum, despite the platform's actions related to ETH-based NFT tokens.

The social media platform announced a giveaway via Rarible, an NFT platform using the Ethereum Blockchain network to mint digital collectible tokens.

However, despite Twitter having released 140 NFT transactions on Ethereum, Dorsey apparently remains solely loyal to Bitcoin.

Following the news on NFT tokens, Twitter user Packanimal suggested it was "only a matter of time before" Dorsey would invest in Ethereum, to which the CEO simply replied "No".

The crypto community then reacted vigorously to Dorsey's three-letter approach to Ethereum, with Cinneamhaim Ventures' Adam Cochran criticizing Twitter CEO for "still being maxi BTC" while Twitter "prints Ethereum-based NFT on Rarible."

Dorsey, who is also the co-founder and CEO of the cryptocurrency-friendly digital payments company Square, previously expressed his loyalty to Bitcoin itself by stating in a 2019 tweet, "I only have Bitcoin." At the Bitcoin 2021 conference in early June, he said, "Bitcoin changes absolutely everything. [...] I don't think there is anything more favorable to people all over the world. "

Early Bitcoin supporter Dorsey repeatedly argued that Bitcoin would be the only currency on the Internet from at least 2018. It comes at a time when some of the biggest Bitcoiners admit that Ethereum could eventually replace Bitcoin as the world's largest cryptocurrency.


Technical Market Outlook:
The ETH/USD pair has hit the 61% Fibonacci retracement at the level of $2,228, but the rally was capped and the Shooting Star candlestick pattern was made at the top of the rally. Currently, the market is testing the technical support seen at the level of $2,043. The momentum is now weak and negative, so any violation of the level of $2,043 will likely expose the level of $1,941 for a test again.

Weekly Pivot Points:
WR3 - $2,667
WR2 - $2,446
WR1 - $2,091

Weekly Pivot - $1,898
WS1 - $1,514
WS2 - $1,323
WS3 - $946


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]

Trading Signal for ETH/USD (Ethereum) for July 02 - 05, 2021: Sell Below $ 2,129



Ethereum, ETH / USD, is trading below the 21 SMA and below the 200 EMA, with a bearish bias, having bounced from the $1,700 zone. It could face this level again.

ETH / USD could not break the EMA of 200 which is located at $ 2,325. It stayed just below this level. Now the price is turning lower again, consolidating below the SMA of 21. As long as it is located below 2,129, there will be downward pressure, thus suggesting a good selling opportunity.

The cryptocurrency market remains nervous and is braced for a stronger decline in the coming days. When everything seemed to be going well, the market makes a downward turn. Retail investors are getting into a panic which does not encourage a sustainable bullish momentum.

Some investors believe that the price of Ethereum should cost between $1,000 to $1,500. This is a reasonable price according to market demand. However, the bulls still believe that ETH can return to the price of $4,000.

Technically, our outlook is bearish for now. A fall to 1,500 could occur in the short term if the 200 EMA continues to push down and ETH trades below this level.

Our recommendation is to sell in any attempt to break the 21 SMA with targets in $1,875 and $1,700.


Support and Resistance Levels for July 02 - 05, 2021
Resistance (3) 2,370
Resistance (2) 2,243
Resistance (1) 2,155

Support (1) 1,930
Support (2) 1,807
Support (3) 1,663





Dimitrios Zappas
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Bitcoin bulls' optimism fades: crypto winter has already arrived

If we consider the Bitcoin chart locally, then the previous forecast and recommendations remain unchanged. The sideways at 31,082.82 - 41,980.24 is relevant, it is recommended to buy or sell from its borders.

But the outlook for long-term investors began to shift towards a bearish scenario. Even convinced Bitcoin bulls have started talking about crypto winter.

In an interview, ADVFN CEO Clem Chambers said his optimism about Bitcoin had subsided. Now he has taken a bearish position, claiming that the price of the main cryptocurrency will fall to $10,000 within the current cycle.

Chambers was interviewed by Stansberry Research Chambers, who predicted in 2018 that the cryptocurrency would return to $20,000, and if "the asset's market mechanism remains viral," it could grow to $200,000 or even $2 million.

Now the CEO of ADVFN believes that the price of Bitcoin will drop to $20,000 soon. And the bear market will end when Bitcoin hits the bottom at $10,000. Moreover, the lower limit of the range, noted by Chambers, may turn out to be slightly higher, in the range between $12,000 and $13,000.

He draws such conclusions based on the fact that Bitcoin "repeats the same old patterns over and over again." According to him, in 2011, 2015, 2017, and 2021, the same situation occurred on the chart of the main cryptocurrency after the halving. "It takes off like a rocket and falls like a rock," Chambers said.

According to him, when BTC/USD falls like a rock, it reaches the bottom "about twice as high" compared to the previous market low. And since the last time, the market reached the bottom on average at the level of $5,000, which means that now it will reach the lower limit at the level of $10,000.


Chambers believes that this time the market would have peaked at $40,000 if institutions hadn't started investing in Bitcoin and brought it to the $60,000 mark.

The CEO noted that he expects a crypto winter in the near future, where Bitcoin could drop below five-digit levels before traders capitulate. In fact, the crypto winter is "already here," and if traders remain long, "it will only get worse."

Chambers said the fall looks exciting to him because investors can build up positions by averaging dollar value over a long period, waiting for the next spike, which may occur after the next halving.

He said that he plans to use this strategy to buy for three years until he has a "huge position" before the next bullish move. Ultimately, he intends to sell his Bitcoins for $90,000 or more when the cycle repeats.






Ekaterina Kiseleva
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Bitcoin remains below key resistance levels, bulls have a lot of work to do to regain control of the trend.

Bitcoin is trading once again around $35,000-$36,000. Short-term trend is unclear as price continues to trade sideways between $38,000-$30,000. Medium-term trend remains bearish and as long as price is below $41,000 there is a possibility of seeing price dip below $29,000.



In the 4 hour chart as shown above, price is bouncing off the Ichimoku cloud support and is moving above both the tenkan-sen (Red line indicator) and the kijun-sen (yellow line indicator). Support by these two indicators is found at $34,900-$34,000. Cloud support is key between $34,300-$32,800. As long as price is above this support zone, we could see higher levels towards $38,000. If this support level fails to hold, we should expect price to challenge $30,000 again.



In the Daily chart bears remain in control of the trend. Price is below the Daily Kumo (cloud) and this confirms the bearish trend. Bulls will need to break inside the Kumo above $37,700 to change trend to neutral. Support by the tenkan-sen is found at $33,300. A break below this level will increase chances of retesting $30,000. Bitcoin is still vulnerable to a move lower. The danger of seeing a move towards $25,000 is still there as price is below the cloud resistance.





Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021