Technical Analysis of ETH/USD for January 29, 2021

Crypto Industry News:

The popular social media Reddit, with over 1.7 billion visits per month, is deepening its ties with the Ethereum Foundation as part of what has been described as the first-ever blockchain partnership.

As announced by Reddit, the partnership's goal will be to increase the site's commitment to blockchain, accelerate scaling and resources for the Ethereum ecosystem, and provide the value and independence of blockchain technology to millions of redditors.

In 2020, Reddit has already initiated two major Ethereum-focused projects. The first, an application called Community Points, was a rewards system that awarded redditors with ERC-20 tokens for contributing engaging content to the platform. Reddit then continued The Great Reddit Scaling BakeOff contest of submitting Ethereum scaling technology solutions that could help some applications move to the main network and eventually scale to all 400 million network users per month.

The next step in a more formalized collaboration with the Ethereum Foundation will focus on developing a scaling technology that can support large-scale applications such as community points on the Ethereum blockchain. The project will be led by Reddit's in-house crypto team, and the announcement makes an appeal to all engineers who are interested in scaling and would be interested in joining the Reddit cryptocurrency team to help with the work of developing a more decentralized internet. All the scaling technology developed under the new partnership will be publicly available.

Technical Market Outlook:

The ETH/USD pair had retraced 61% of the last wave down as it hit the level of $1,371. Nevertheless, the bounce was capped at this level as the Pin Bar candle was done, so the market reversed towards $1,284. The next technical support is seen at the level of $1,274, $1,233 and $1,208. The momentum is pointing down around the neutral level, so the sentiment might be flipping to negative in the short-term. The nearest technical resistance is located at the level of $1,376. The higher time frame trend remains up.

Weekly Pivot Points:

WR3 - $1,927

WR2 - $1,665

WR1 - $1,545

Weekly Pivot - $1,286

WS1 - $1,156

WS2 - $897

WS3 - $767

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.

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

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