Technical Analysis of ETH/USD for October 1, 2020

Crypto Industry News:

Ethereum has been very popular this year, usually not for good reasons. Namely, network congestion and high gas costs often put gas in the spotlight. While the reason for speeding up these problems was the boom on DeFi protocols in Ethereum, some projects have already started work on a solution such as Synthetix (SNX).

Synthetix, along with other DeFi platforms such as Uniswap, Aave and Curve, is working closely together to introduce scaling solutions. According to a recent update, Synthetix struggled with high fees before being upgraded to a primitive L2 scaling version on September 24th. Dubbed the "Fomalhaut" update, this is the first phase of L2's migration to Optimistic Ethereum. As it was written on the Synthetix blog:

"This will be a network testing incentive to lower gas costs for SNX's small stackers."

This would make collecting prizes for small stakes cheaper as opposed to the hundreds of dollars deposited previously.

Thanks to Synthetix's plan to deal with congestion and high tolls, it has also managed to attract the attention of the DeFi community. With the growing importance of scaling solutions and DeFi, SNX has also reached the quotes on Bitfinex and Gemini.

Technical Market Outlook:

The local low at the ETH/USD pair was recently made at the level of $350 and since then the market bounced towards the 61% Fibonacci retracement again. This Fibonacci level is located at $362.92 and if clearly violated, then the bulls will eye the next technical target seen at $369,37 and $375.52. If this two levels are violated, then the bulls will regain the control over the market for longer. The momentum had reversed as well and now is on the neutral level, pointing north.

Weekly Pivot Points:

WR3 - $446.64

WR2 - $410.95

WR1 - $384.24

Weekly Pivot - $347.99

WS1 - $319.88

WS2 -$284.46

WS3 - $256.92

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 is currently seen at the level of $305.20 - $321.95, so 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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