Technical Analysis of ETH/USD for January 20, 2021

Crypto Industry News:

According to the cryptocurrency analytics firm Messari, the daily Ethereum (ETH) transaction volume is now 28% greater than Bitcoin (BTC).

Ethereum's daily transaction volume is parabolic, and Ethereum-powered stablecoins and Ethereum itself have processed $ 12.3 billion in transactions in the past 24 hours. The data does not include ERC-20 transactions other than stablecoins for Ethereum to avoid double counting of DEX volumes.

According to the Blockchain Center's "Flippening Index", which uses eight key indicators to track whether the Ethereum network has surpassed Bitcoin's size and activity, Ethereum currently has a 63.5% chance of outperforming the cryptocurrency king's network in this regard. While Blockchain Center data suggests Ethereum has yet to beat Bitcoin transaction volume, the Flippening Index shows that Ethereum is already beating Bitcoin in terms of number of transactions and total transaction fees.

The data also shows an Ethereum node count of 94% and estimates Ethereum's trading volume to be 57% of Bitcoin trading after bouncing back from a record 76% last week.

Technical Market Outlook:

The ETH/USD pair has made a new all time high at the level of $1,430.50. Since then the Doji candlestick was made at the H4 time frame chart, giving the short-term indication of a possible pull-back coming. So far, the market bounced from $1,323 technical support, but if the bearish pressure intensify, the pull-back might get deeper. The next technical support is seen at the level of $1,294 and the other one at $1,173. On the other hand, the next target for bulls is seen at the level of $1,500.

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 $1,500, 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.

analytics6007d9f759be5.jpg

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

Pages