Technical Analysis of ETH/USD for October 26, 2020

Crypto Industry Outlook:

The decentralized finance (DeFi) boom has caused the Ethereum network (ETH) to process more than twice the daily volume of bitcoin transactions per day.

According to the cryptocurrency market data aggregator Messari, the 30-day moving average for Ethereum's transaction volume is currently $ 7 billion. Bitcoin processes less than $ 3 billion. Messari predicts that if the current trend continues, Ethereum has a real chance of becoming the first public blockchain to account for $ 1 trillion in transfers in a calendar year. The previous, "best" calendar year of Ethereum compared to Bitcoin was 2018. At that time, the ETH network processed a volume of half a billion dollars. It was then 59% of the 849 million BTC volume.

Bitcoin is heading towards the second largest year in transaction volume after 2018. It is expected to process $ 800 million by the end of 2020.

Technical Market Outlook:

The ETH/USD pair keeps trading under the local trend line around the level of $407. There were three Bearish Engulfing candlestick patterns around the last swing high made every time the bulls tried to rally. This market behaviour indicates the developing bearish pressure, but so far the results from it are very poor. Only if the market break below the level of $389.90 the bulls will have a problem to control the price. The local technical support is seen at the level of $400, $394.85 and $389.90.

Weekly Pivot Points:

WR3 - $490.39

WR2 - $455.51

WR1 - $435.03

Weekly Pivot - $398.88

WS1 - $379.21

WS2 - $342.87

WS3 - $323.39

Trading Recommendations:

The up trend on the Ethereum continues and the next long term target for ETH/USD is seen at the level of $500, so any correction or local pull-back should be used to open the buy orders. This scenario is valid as long as the level of $309.61 is broken.

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The material has been provided by InstaForex Company - www.instaforex.com