Technical Analysis of ETH/USD for December 31, 2020

Crypto Industry News:

Ethereum's competitor, Polkadot (DOT), is making huge profits after receiving support from the Binance cryptocurrency exchange. According to CoinMarketCap, in the past seven days, DOT soared from its low of $ 4.77 on December 24 to a record high of $ 7.65 today. Traffic means an increase of 60% in six days.

Polkadot's growth comes the day after Binance announces $ 10 million funding for projects built around the Polkadot ecosystem. The multi-million dollar investment is part of the stock market's efforts to provide users with even better access to decentralized finance.

Since its announcement, Polkadot has replaced ETH on the Binance homepage. This has given the cryptocurrency more exposure and a basis for potentially competing with the world's second largest cryptocurrency.

Technical Market Outlook:

The ETH/USD pair keeps struggling with the level of $745.60 which is a 50% Fibonacci retracement on the weekly time frame chart of the last, big, main wave down from the ATH located at the level of $1,422. During the quick pull-back the market hit the level of $688.26, but bounced right back up. The last high was made at the level of $756.12, but the price reversed quickly under the level of $745 again. The intraday support is seen at the levels of $700 and $673. The additional support is being provided by the short-term trend line as well. The strong and positive momentum supports the short-term bullish outlook for Ethereum.

Weekly Pivot Points:

WR3 - $907.99

WR2 - $803.63

WR1 - $751.04

Weekly Pivot - $647.44

WS1 - $590.99

WS2 - $493.57

WS3 - $441.00

Trading Recommendations:

The up trend on the Ethereum continues and the next long term target for ETH/USD is seen at the level of $800, so any correction or local pull-back should be used to open the buy orders. Nevertheless, the momentum has decreased recently on the lower time frames and volatility is not that great either. This scenario is valid as long as the level of $500 is broken.

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