Cryptocurrency Analysis

[IFX_Selena]

Technical Analysis of ETH/USD for October 29, 2021


Crypto Industry News:
The price of Ethereum, the second largest cryptocurrency by market capitalization, set a new all-time record, just two days after breaking the previous record. The new ATH ETH is $ 4,404.55.

On Tuesday, October 26, the price of ETH dropped to nearly $ 4,300 before rising back to below $ 4,000. The network has undergone its third update in the last seven months.

The ETH price also benefited from the London hard fork in August, the assumptions of which introduced a deflationary mechanism into the network.

One of the most anticipated changes to Ethereum, the EIP-1559, was also the largest to be introduced under London. EIP has introduced a "base charge" on blocks in the network that tracks the gas price that the network accepts from transactions based on demand for block space. This means that it is easier for portfolios and users to estimate what the right price should be for their trade.

Additionally, EIP-1559 has added a new transaction type where users can specify the maximum fee they are willing to pay, along with the maximum they are willing to send to the miner, and get a refund of the difference between this maximum fee and the basic fee and tip for the miner. Finally, EIP also burns some transaction fees, which a large part of the community sees as a critical improvement in the economics of the Ethereum network.


Technical Market Outlook
The ETH/USD pair has made a new ATH at the level of $4,404. The rally from the level of $3,890 has ended with a Shooting Star candlestick pattern anyway, so the corrective cycle is about to start. The nearest technical support is seen at the level of $4,274 - $4,243 and the key short-term technical support is currently located at the level of $4,121. The larger time frame trend remains up and the outlook for the nearest weekend is bullish.

Weekly Pivot Points:
WR3 - $5,099
WR2 - $4,706
WR1 - $4,412

Weekly Pivot - $4,017
WS1 - $3,701
WS2 - $3,313
WS3 - $2,969


Trading Outlook:
The next long-term target for ETH is seen at the level of $5,000. Nevertheless, in order to continue the long-term up trend, the price can not close below the technical support at the level of $2,906. The level of $1,728 (61% Fibonacci retracement of the last big impulsive wave up) is still the key long-term technical support for bulls. The level of $3,677 is the key mid-term technical support for bulls.







Sebastian Seliga
Analytical expert of InstaForex
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