Technical Analysis of ETH/USD for November 3, 2020

Crypto Industry Outlook:

Almost a quarter of the circulating supply of Ethereum (ETH) is stored on cryptocurrency exchanges, according to data from the ViewBase analytical platform.

This page shows that there are 26,768,260 ETH on the exchanges, corresponding to 23.6% on a value of $ 10.3 billion. Almost 26 million of these tokens are held on 10 centralized exchanges, and Coinbase alone holds 8,521,807 ETH, or 7.5% of the supply.

Ether is ahead of Bitcoin by many miles in terms of the percentage of tokens held on exchanges. BTC has 8.1% of its supply in circulation on exchanges.

According to Glassnode, the number of Bitcoins stored on exchanges dropped significantly over the year, going down from a record high of 2.97 million BTC in February to below 2.6 million yesterday. The platform also shows bullish signals for Bitcoin with daily new addresses for BTC around 480,000, which is six times more than for Ether, which has less than 80,000 new addresses created each day.

Glassnode does not reflect the same percentage of coins held in exchanges as ViewBase. There are less than 16.6 million ETH (14.7%) and almost 2.6 million BTC (14%) on the exchanges, according to Glassnode.

Technical Market Outlook:

The ETH/USD pair has moved lower and hit the technical support at the level of $369.37 as anticipated after the rally was capped by the trend line resistance around the level of $403.05. The momentum is now weak and negative, which indicates a possibility of another wave down towards the level of $362.60 and $355.60. If a daily candle closes below $360 level, then the bears will have full control of the market.

Weekly Pivot Points:

WR3 - $456.03

WR2 - $431.91

WR1 - $415.05

Weekly Pivot - $393.33

WS1 - $376.79

WS2 - $355.02

WS3 - $337.80

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