Technical Analysis of ETH/USD for March 5, 2021

Crypto Industry News:

According to several reports, PayPal wants to go a step further in offering cryptocurrency-based services and purchase (for $ 500 million) a startup specializing in cryptocurrency storage. The company may be in talks to buy a cryptocurrency startup focused on providing security solutions to store cryptocurrencies.

According to various reports, PayPal is interested in taking over Curv, and the talks between the teams of both companies are an open secret on the global technology scene - although it may not be a secret anymore, given how quickly the venture spreads despite the seemingly cautious stance of both companies .

Some sources say the deal would amount to around $ 500 million. This amount would exceed the expectations of the Curv development team, which were hoping to rake in between $ 200 million and $ 300 million from the company's sale.

PayPal's interest in cryptocurrencies has grown as a result of institutional investment, greater regulatory transparency, and, of course, the rise in digital asset prices.

Months after the March 2020 crash, PayPal announced a partnership with Paxos to provide its clients with exposure to Bitcoin, Ethereum, Bitcoin Cash, and Litecoin. The idea was to enable certain cryptocurrency operations in a safe, easy and legal manner. The initiative turned out to be a huge success for PayPal, and the price of bitcoin soared to new all-time highs.

Technical Market Outlook:

After the ETH/USD pair has failed to rally above the technical resistance located at the level of $1,648 and made the Doji candlestick pattern, the market reversed lower towards the trend line support. The test was at the level of $1,455 and so far the bulls managed to bounce, but the bounce is shallow so far. The momentum is still weak and negative, so if the bearish pressure intensify, then the next target for them is seen at the level of $1,274 again.

Weekly Pivot Points:

WR3 - $2,368

WR2 - $2,149

WR1 - $1,728

Weekly Pivot - $1,511

WS1 - $1,076

WS2 - $857

WS3 - $438

Trading Recommendations:

During the recent corrective cycle Ethereum has lost almost 50% of its value , but the longer term up trend on the Ethereum continues. When the correction is terminated, the next long term target for ETH/USD is seen at the level of $2,100. The key long term technical support is seen at the level of $1,412, so only a weekly candle close below this level will invalidate the bullish scenario.

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

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