Technical Analysis of ETH/USD for February 25, 2021

Crypto Industry News:

A new report has been released in which it estimates the total number of cryptocurrency users worldwide has increased from 66 million in May 2020 to 106 million in January 2021.

Given the complexity of mapping unique crypto wallet addresses to number of people, the methodology used in the report combines the data from the chain with several mixed parameters to calculate separate estimates for the two largest cryptocurrencies by market capitalization, Bitcoin and Ethereum. They then provide an aggregate that can be used to track user growth trends across the globe.

Over the past eight months, June 2020, August 2020 and January 2021 were the strongest in terms of growth. The report notes that this increase essentially correlates with the strength of Bitcoin's price, however, splitting the data between the two coins may provide more detailed information.

In January, the global number of Bitcoin users was estimated at 71 million, compared with 14 million for Ethereum. Both cryptocurrencies saw massive user growth this month - 30.2% and 13.1% respectively.

While the trends appear to be clear, the report has highlighted some limitations and caveats that need to be kept in mind regarding its findings. The methodology relies on data from the Bitcoin and Ethereum chains, survey analysis and internal data, however, it is unlikely to be effective in capturing over-the-counter users and off-chain transactions.

The report also had to assume and estimate how many users on the web still own cryptocurrencies, compared to the number that has likely already sold its resources. In addition, the sampling error (due to some use of internal research and data) as well as possible differences between stock exchange deposit flows should be taken into account.

Technical Market Outlook:

The ETH/USD bounce had been capped at the level of $1,700, which is the 50% Fibonacci retracement of the last wave down. The nearest technical resistance is located at the level of $1,648 and if this level is violated, then the next targets for bulls are $1,700 and 1,779 again. The intraday support is seen at the levels of $1,554 and $1,478. Please notice the momentum is still weak and negative, so that might be the end of the correction. The weekly and monthly time frame trend is still up. The bullish scenario is valid as long as the level of $1,412 is broken.

Weekly Pivot Points:

WR3 - $2,476

WR2 - $2,254

WR1 - $2,101

Weekly Pivot - $1,876

WS1 - $1,724

WS2 - $1,492

WS3 - $1,337

Trading Recommendations:

The up trend on the Ethereum continues and the next long term target for ETH/USD is seen at the level of $2,100, 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 $1,412 is broken.


The material has been provided by InstaForex Company -