Technical Analysis of ETH/USD for 03/04/2020:

Crypto Industry News:

Vitalik Buterin - co-creator of Ethereum - got involved in a Twitter discussion with the Bitcoin developer yesterday.

"Digital gold was, is and will be a bitcoin narrative," one user wrote on Twitter, which caused a stormy discussion. Buterin emphasized that the oldest cryptocurrency was originally to act as digital cash, not gold. He also added that he joined the BTC community in 2011, and yet he remembers that even then the atmosphere around this cryptocurrency was completely different. Bitcoin was originally an electronic peer-to-peer cash, only later it became gold. As proof of this statement, Buterin attached the BTC White Paper, because even in its title it was clearly emphasized. It is no surprise, therefore, that he supports this original version.

Although fees in the Bitcoin network may seem relatively high to some, others accept this state of affairs. Vitalik Buterin himself wrote that this is a controversial matter. He added, however, that users do not have to use BTC, if they do not like it, they can always use a different block chain.

The nickname of digital gold, which was given to Bitcoin, deviates from the original concept. In this case, this cryptocurrency begins to be perceived more as a speculative object, not money, but no matter what role BTC currently plays, its initial assumptions were undoubtedly associated with P2P transactions, not value storage. This is difficult to deny.

Technical Market Outlook:

The ETH/USD pair has made a new local high after a breakout through the level of $142.77 has been made. The new high was made at the level of $149.52, but the candlestick pattern of a Pin Bas has been made during this move, so the price wend back down below the level of $142.77 again. The Ethereum is still trading below this level and the bulls are still trying to make use of the momentum behind this move up and move higher towards the level of $153.44 which is a technical resistance for the price. On the other hand, if the bulls fail here, then the next technical support is seen at the level of $132.21 - $130.87.

Weekly Pivot Points:

WR3 - $161.35

WR2 - $151.83

WR1 - $136.71

Weekly Pivot - $127.64

WS1 - $112.54

WS2 - $102.86

WS3 - $88.46

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 -