Technical Analysis of ETH/USD for September 22, 2020

Crypto Industry News:

Ethereum Classic Labs is struggling with multiple security breaches and has partnered with ChainSafe and OpenRelay in hopes of increasing protection against 51% of attacks. Ethereum Classic and its Core Dev Team will work with both ChainSafe and OpenRelay to develop and test security responses.

James Wo, founder and president of Ethereum Classic Labs, said the partnership made sense:

"OpenRelay and ChainSafe are well versed in Ethereum Classic, working together will have some of the brightest minds in blockchain, solving 51% of the problem in tandem. The team will bring additional knowledge of Proof-of-Work security systems and test environments."

OpenRelay will assist Ethereum Classic in "developing practical simulations and models for proposed features, establishing a test network infrastructure, and designing and implementing test network tests," while ChainSafe is working on reviewing many security proposals to ensure network security.

Ethereum Classic saw at least three 51% attacks in August alone. These attacks caused, among others exchanges like OKEx to warn Ethereum Classic that it will remove ETC if it doesn't improve its security. The company, determined to improve its security, said regulation could be key to stopping future attacks by restricting hashpower rentals. Apparently, at least two attacks were caused by hashing power borrowed from NiceHash.

Technical Market Outlook:

The ETH/USD pair has extended the down wave and made a fresh new low at the level of $331.26. The level of $355.24 will now act as a technical resistance for the price and the level of $323.87 will be a technical support. The momentum has decreased as well and now is negative and weak according to the RSI indicator. Moreover, the price is now getting closer to the key demand zone seen between the levels of $305.20 - $321.95. This kind of price action might be the beginning of a deeper pull-back, but the weekly trend remains up.

Weekly Pivot Points:

WR3 - $426.36

WR2 - $409.08

WR1 - $387.32

Weekly Pivot - $370.45

WS1 - $348.67

WS2 - $331.18

WS3 - $309.49

Trading Recommendations:

The weekly and monthly time frame trend on the ETH/USD pair remains up and there are no signs of trend reversal, so buy orders are preferred in the mid-term. The key mid-term technical support, seen at the level of $364.95 had been violated, but all the dynamic corrections are still being used to buy the dips. The next mid-term target for bulls is seen at the level of $500.

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