Technical Analysis of ETH/USD for April 28, 2021

Crypto Industry News:

When it comes to Friday's $ 930 million ethereum option expiration, the bulls have an edge of $ 115 million. This is a signal that ETH may be on track to reach new price records.

In the past few weeks, the price of ethereum has hovered between $ 2,000 and a record $ 2,650. The 20% drop on April 17 eliminated $ 1 billion from long positions in futures markets and drastically reduced investors' risk appetite.

A 28% increase in the past few days has brought the number of open positions on ETH futures to $ 8.2 billion, just 5% below the April 15 record. A similar situation occurred in the options markets, which have increased by 45% since the expiry on March 25.

Options are similar to futures in that derivative contracts give investors a right, but not an obligation, to sell or buy an asset for a predetermined price.

The recent rebound in prices was attributed to a statement by the Paypal boss that said demand for cryptocurrencies was many times higher than expected. What's more, the net value locked in Ethereum's smart contracts hit a record high of over $ 54 billion, led by Uniswap, Compound and Maker.

Technical Market Outlook:

The ETH/USD pair has made another all time high at the level of $2,714. There is a Bearish Engulfing candlestick pattern made at the top of the rally, so it is a time for a local pull-back, but any further rally will lead to another wave up towards the round level of $3,000. The immediate technical support is located at $2,543. The momentum remains strong and positive, so the odds for another wave up are high.

Weekly Pivot Points:

WR3 - $3,085

WR2 - $2,863

WR1 - $2,509

Weekly Pivot - $2,289

WS1 - $1,926

WS2 - $1,691

WS3 - $1,326

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 $3,000. The key long term technical support is seen at the level of $2,000, so only a weekly candle close below this level will invalidate the bullish scenario.


The material has been provided by InstaForex Company -