Technical Analysis of ETH/USD for January 18, 2021

Crypto Industry News:

Someone sent 74.6 million Synthetix (SNX) tokens worth just over $ 1 billion on the Ethereum network. He incurred a transaction fee of just $ 7.42 for this.

The funds were transferred from a contract called "Synthetix: Reward Escrow". Synthetix is a decentralized financial protocol (DeFi) for trading tokens linked to assets on Ethereum. For example, the token may be linked to the price of Tesla shares.

This is one of the largest single transactions in cryptocurrency history so far. Last summer, 101,857 BTC was transferred with a value of approximately $ 933 million at that time (at the prices at the time). If a similar transaction were to be processed today, it would be worth nearly $ 4 billion.

While the SNX transaction itself is impressive, Twitter users were quick to point out that Ethereum's transaction fees were still too high for a daily network. The $ 7.42 fee becomes much more expensive if we wanted to transfer tokens worth just a few dollars.

Technical Market Outlook:

The ETH/USD pair has been seen slowly climbing through the local technical resistance levels and eventually hit the level of $1,295. Since then the market had been consolidating in a narrow zone located between the levels of $1,116 - $1,272. The momentum remains strong and positive, so the bulls might still test the level of $1,300 and then try to break through the recent swing high seen at the level of $1,348. The immediate technical support is seen at the level of $1,100.

Weekly Pivot Points:

WR3 - $1,800

WR2 - $1,551

WR1 - $1,448

Weekly Pivot - $1,183

WS1 - $1,077

WS2 - $810

WS3 - $699

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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