Technical Analysis of ETH/USD for December 2, 2020

Crypto Industry News:

According to the information on the websites, the first part of the new version of ETH based on proof-of-stake (PoS) was launched several hours ago. So officially Ethereum 2.0 has already been launched. This is a milestone not only for the Ethereum project itself, but also for the entire cryptocurrency community.

Yesterday's premiere ends the opening act, or "Phase 0", of the transition of the Ethereum consensus mechanism, under which the network - whose native cryptocurrency, Ether, worth $ 70 billion by market capitalization - will fundamentally change the way payments are settled.

The Beacon Chain will be the backbone of the new Ethereum blockchain, a network that is expected to keep pace with PayPal and Visa in terms of transaction processing speed while competing with them for payment transparency.

Ethereum 2.0 has at least two technical hurdles to achieve its ever-changing timeline: dynamically splitting the Ethereum PoS chain into multiple datasets called "shards" and implementing Rollups, a bandwidth solution for decentralized applications (dapps).

Technical Market Outlook:

The ETH/USD pair has hit the level of $635.46 before it was capped and reversed towards the level of $561.91 The momentum is still strong and positive, so the up trend might be still continued. The levels of $600, $578.89 and $548.16 will now act as temporary technical support for the price. The nearest technical resistance is seen at the level of $600 and $620.52. The is no indication of the up trend reversal on the higher time frames like weekly and monthly.

Weekly Pivot Points:

WR3 - $771.53

WR2 - $696.42

WR1 - $633.11

Weekly Pivot - $557.97

WS1 - $496.01

WS2 - $420.20

WS3 - $358.90

Trading Recommendations:

The up trend on the Ethereum continues and the next long term target for ETH/USD is seen at the level of $700, so any correction or local pull-back should be used to open the buy orders. Moreover, the bulls has hit the 38% Fibonacci retracement located at the level of $587.53 on the weekly time frame chart, but the current up trend is still valid. This scenario is valid as long as the level of $360 is broken.

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