Technical Analysis of ETH/USD for May 31, 2021

Crypto Industry News:

In an interview at the StartmeupHK virtual conference held in Hong Kong, Buterin said that while proof of stake is "still in its infancy and less battle tested" than the current proof of work model, it could ultimately reduce chain energy consumption by up to 10,000 times.

Comments come at a time of rampant criticism of Blockchain technology for its environmental impact - including from some former supporters. Tesla founder Elon Musk recently entered into a discussion about stopping Bitcoin payments, saying he cannot encourage the use of fossil fuels by mining Bitcoin. In other threads, he also called on Dogecoin to increase performance on several key indicators.

Buterin responded directly to these scalability comments in a blog post on his website describing the problems of trying to scale by simply adjusting parameters around the block size.

Ultimately, Buterin seems to agree with critics on the need for Blockchain chains to adopt newer, more efficient models - especially as the chain is growing and becoming a widely used computing network.

Technical Market Outlook:

The ETH/USD pair has bounced from the technical support located at $2,201 and is heading towards the upper channel line again. The market still trades inside of the main descending channel and the breakout above the upper channel line is the most important breakout for the bulls right now. The bears are still in full control of the market and the next target for bears is seen at the level of $1,729, $1,633 and $1,544. The nearest technical support is still seen at the level of $2,201.

Weekly Pivot Points:

WR3 - $4,688

WR2 - $4,131

WR1 - $2,922

Weekly Pivot - $2,341

WS1 - $1,141

WS2 - $579

WS3 - $181

Trading Recommendations:

Ethereum has lost more than 50% of the recent gains from the lows of March 2020 and now is currently in the counter-trend corrective cycle. The next long-term target for bears is seen at the level of $1,728 (61% Fibonacci retracement of the last wave up) and $1,420 ( January 2018 swing high). The up trend is resumed when the level of min. $3,000 is clearly violated.

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

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