Technical analysis of ETH/USD for February 06, 2021

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Technical market outlook of Ethereum (cryptocurrency) :

Trading Ethereum (ETH/USD) :

Since three weeks ETH/USD increased within an up channel, for that Ethereum hits new highs $1,513, $1,571 and $1,650.

Ethereum price had a significant breakout above the price of $1,513, $1,571 and $1,650. So, the support levels are seen at $1,513, $1,571 and $1,650 on the H1 chart.

Ethereum price is bullish but climbing higher will be strict, our next traget $2,000.

Also, it should be noted that some news said : the trust fund has added around 25,000 ETH right after opening worth around $37 million.

From this point, we guess there are some positive metrics in favor of ETH as well.

Ethereum continues moving in a bullish trend from the support levels of $1,571 and $1,650. Currently, the price is in a bullish channel.

This is confirmed by the RSI indicator signaling that we are still in a bullish trending market. As the price is still above the moving average (100), immediate support is seen at $1,571, which coincides with a golden ratio (61.8% of Fibonacci).

Consequently, the first support is set at the level of $1,571. Hence, the market is likely to show signs of a bullish trend around the spot of $1,571.

Signal :

Buy orders are recommended above the golden ratio ($1,571) with the first target at the level of $1,757. Furthermore, if the trend is able to breakout through the first resistance level of $1,757. We should see the pair climbing towards the double top ($1,757) to test it. The pair will move upwards continuing the development of the bullish trend to the level $1,800. It might be noted that the level of $1,900 is a good place to take profit because it will form a new double top in coming hours.

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Crypto industry news (Ethereum News - (Source : Bloomberg))

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Ethereum's recent gains have been supported by an ever-increasing level of futures open interest. As CoinTelegraph reports, open interest on Ether futures reached a record $6.5 billion, which is a 128% monthly increase.

This suggests short-sellers are likely fully hedged, taking benefit of the futures premium, instead of effectively expecting a downside.

Professional investors using the strategy described above are essentially doing cash and carry trades which consist of buying the underlying asset and simultaneously selling futures contracts.

These arbitrage positions usually do not present liquidation risks. Therefore, the current surge in open interest during a strong rally is a positive indicator. Tyler Durden Sat, 02/06/2021 - 11:25

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

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