Technical Analysis of ETH/USD for October 8, 2020

Crypto Industry News:

The amount of computing power in the Ethereum network is currently at the level of the new ATH. According to Glassnode, on October 6 the hashrate on the Ethereum network reached a record level of over 250 TH / s. This means an increase of 80% from the beginning of the year. According to Glassnode, the boom in decentralized finance (DeFi) contributed mainly to the growth of hashrate.

Interestingly, data from the F2Pool mining pool shows that mining Ethereum (ETH) is currently up to three times more profitable than Bitcoin (BTC).

Hashrate is a key metric in determining blockchain security. It measures the computing power of the network. The last time Ethereum hashrate was close to ATH in August 2018, when the metric reached 246 TH / s.

The rapid growth of DeFi, coupled with the rapid growth of stablecoins, has pushed Ethereum's transaction fees to record levels. Data from Glassnode shows that Ethereum miners in September earned $ 166 million from transaction fees alone. BTC miners over the same period of time made only $ 26 million.

Technical Market Outlook:

After the ETH/USD pair made a Pin Bar candlestick at the end of the recent down wave, it bounced towards the level of $345.20, but did not make it and start to consolidate in a narrow range. If this local technical resistance is not clearly broken, then the down move should resume and head towards the next target seen at the level of $322.87 - $321.95. The momentum remains negative and might accelerate down if the sell-off starts.

Weekly Pivot Points:

WR3 - $403.75

WR2 - $387.38

WR1 - $368.10

Weekly Pivot - $351.05

WS1 - $333.15

WS2 - $315.51

WS3 - $296.13

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.

analytics5f7eb5a964be7.jpg

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