Technical Analysis of ETH/USD for January 15, 2021

Crypto Industry News:

Excessively high gas prices in Ethereum still make it difficult to process smaller transactions on the network. Meanwhile, along with the increasingly accelerating adoption of solutions based on the second layer. They can process thousands of transactions per second, not just a handful of those processed in tier one.

The decentralized LeverJ exchange has experienced a sharp increase in trading volume since the launch of its perpetual contracts four weeks ago. About $ 75 million were traded in 26,600 deals, costing a total of nearly $ 600 in gas fees.

These numbers may seem small compared to DeFi giants such as Uniswap. However, they represent a surge in second-tier adoption at a time when such technology appears to be most needed. Essentially, tier two scaling is about removing processes from the backbone for faster and cheaper data and transaction processing.

The DeFi Synthetix protocol is also ready to run the second optimization layer called Castor. Castor is the result of four months of testing that began in late September, offering test network participants the incentive of a native SNX token.

Technical Market Outlook:

The ETH/USD pair has made a new local high at the level of $1,253, so all of the Fibonacci retracement levels had been violated. In a case of a breakout, the next target for bulls is seen at the level of $1,300. The intraday technical support is seen at the level of $1,149. Nevertheless, to resume the up trend, the bulls have to break through the technical resistance located at the level of $1,300. The momentum remains neutral to positive. 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.

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

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