Technical Analysis of ETH/USD for 24/04/2020:

Crypto Industry News:

Smart contacts at Ethereum have risen to almost 2 million compared to the previous month, where network deployment costs are still low. In March, the Ethereum network reached 1,971,632 million, which means an increase of 75% compared to February.It is worth noting that this level coincided with the low cost of implementation on Ethereum, where developers spent an average of $ 11.6 thousand. This suggests that the popularity of the Ethereum platform is increasing, which means strong support for the upcoming Ethereum 2.0 upgrade.

Although in March, it rose to a record number of smart contracts, however there was no noticeable increase in the number of transactions, which may suggest that many contracts are not used or do not translate into increased user involvement.

The previous record level took place in November 2018, when the number of implemented contracts reached almost 1.5 million, after which it fell to an average of 670 thousand in 2019.In the Ethereum 2.0 roadmap, created by Ethereum's founder Vitalik Buterin, the network is configured to switch from Proof-of-Work to Proof-of-Stake. This mechanism can remove the scalability problem that currently discourages many programmers from deploying the network. Recent information on Ethereum 2.0 may prove to be a driving force that breathes new life into the popular blockchain platform.

Technical Market Outlook:

The ETH/USD bulls has managed to push the price towards the level of $186, which is very close to the key short-term resistance level. This level was broken as the new local high was made at the level of $193.78 before the pair dive back under the resistance again. The nearest techncial support (intraday) is seen at the level of $178.25, but so far the ETH keeps bouncing from 38% Fibonacci retracement located at #183.07. The next target for bulls is seen at the level of $209.89. The key short-term support is seen at the level of $164.45 and if violated, the price can drop to the level of $153.46.

Weekly Pivot Points:

WR3 - $240.86

WR2 - $214.90

WR1 - $200.99

Weekly Pivot - $173.55

WS1 - $159.05

WS2 - $132.99

WS3 - $117.12

Trading Recommendations:

The fear of the coronavirus consequences is very strong among the global investors and it rules on the financial markets. So far the global investors are not so keen to invest in cryptocurrency, because they are being perceived as risky assets. The larger time frame trend on Ethereum remains down and as long as the level of $214.67 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred.


The material has been provided by InstaForex Company -