Technical Analysis of ETH/USD for March 8, 2021

Crypto Industry News:

The implementation of the changes under EIP 1559 is expected to be one of the most important milestones ever made in the Ethereum blockchain. About five other EIPs are to be added to the London update.

High gas charges in the Ethereum network are a big problem for users for a long time. In a few months, this may not be a problem anymore. Ethereum Improvement Proposal (EIP) 1559 aims to provide a solution to the issue of high gas charges by improving online transaction processing and modifying the economy of the current network monetary policy.

An essential feature of this new fee structure is that the inclusion fee is only paid to ETH miners. Under this plan, mining will continue to burn the necessary costs. This is to ensure that only network tokens can be used for transactions on the Ethereum network. The proposal supports the economic value of ETH tokens in the Ethereum ecosystem and the risk associated with MEV risk reduction.

Technical Market Outlook:

The ETH/USD pair has been going up above the level of $1,648, which is now a technical support for the price. The bulls have manage to break above the level of $1,666, which is a 61% Fibonacci extension of the last wave up and are currently heading towards the level of $1,804, which is a 100% Fibonacci extension of the last wave up. The strong and positive momentum supports the short term bullish outlook, but in order to move towards the level of $1,804, the bulls have to break above the level of $1,754, which is a 61% Fibonacci retracement of the last wave down. The larger time-frame trend is still up and there is no indication of the long-term termination or reversal yet.

Weekly Pivot Points:

WR3 - $2,090

WR2 - $1,882

WR1 - $1,810

Weekly Pivot - $1,598

WS1 - $1,500

WS2 - $1,295

WS3 - $1,210

Trading Recommendations:

The longer term up trend on the Ethereum continues despite the local counter-trend corrections. 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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