Technical Analysis of ETH/USD for January 12, 2021

Crypto Industry News:

The Intercontinental Exchange, owner of the New York Stock Exchange and the institutional cryptocurrency exchange Bakkt, has announced an agreement that will result in its cryptocurrency arm being listed on exchanges.

As reported by the financial media, Bakkt is about to merge with VPC Impact Acquisition Holdings by trading under the VIH banner. VPC is a so-called "special purpose vehicle" or SPAC. It is a front company with the sole purpose of buying or merging with another company and allowing it to be listed on exchanges without going through the lengthy and costly IPO process.

Bakkt is expected to be valued at $ 2.1 billion after the merger. The stock exchange will also raise an additional $ 532 million to support the development of the Bakkt App, retail wallet app and rewards app.

A Bakkt spokesman said the merger is expected to end in the second quarter of 2021. The combined company will be renamed Bakkt Holdings, Inc. and will be listed on the NYSE. The rep also said Bakkt is now focused on delivering the app in March. Rumors about the takeover appeared in early January. Bakkt saw a volume increase this year, posting several more records.

Technical Market Outlook:

The ETH/USD pair has bounced from the level of $922 made during the recent sell-off when the Pin Bar candlestick was made. The market trades now around the level of $1,135, which is a 50% Fibonacci retracement level of the last wave down. The next target for bulls is seen at the level of $1,185, where the 61% Fibonacci retracement is located. Nevertheless, to resume the up trend, the bulls have to break through the short-term trend line resistance around the level of $1,2000. The momentum remains neutral. The larger time frame trend remains up.

Weekly Pivot Points:

WR3 - $1,598

WR2 - $1,630

WR1 - $1,500

Weekly Pivot - 1,188

WS1 - $1,038

WS2 - $720

WS3 - $563

Trading Recommendations:

The up trend on the Ethereum continues and the next long term target for ETH/USD is seen at the level of $1,420, so any correction or local pull-back should be used to open the buy orders. Please notice, the up trend starting to go vertical, so the volatility will be higher than average. The bullish scenario is valid as long as the level of $830 is broken.


The material has been provided by InstaForex Company -