Ethereum Retests the 2,400 Resistance – Descending Triangle Pattern Exerts Pressure!
The ETH/USD was closed at $2223.15 after placing a high of $2230.95 and a low of $2154.60. ETH/USD remained green
Arslan Butt•Monday, July 5, 2021•2 min read
The ETH/USD closed at $2,223.15, after placing a high of $2,230.95, and a low of $2,154.60. The ETH/USD remained green for the weekend; however, the gains were minimal, as the market remained consolidated. A report published on Friday suggested that a London-based multinational professional services firm, EY, has open-sourced the prototype code for its zk-proofs Ethereum Layer 2 solution, Nightfall 3. The rollups were designed to take the transaction load off the main Ethereum blockchain (Layer 1) and shift it to a secondary layer (Layer 2). The main idea behind the mechanism was to free the Ethereum blockchain of transactions, in order to increase scalability and transaction throughput.
According to a JP Morgan report, Ethereum upgrades could jump-start a $40 billion staking industry. JP Morgan estimated that the staking industry was currently worth $9 billion and that this number could balloon to $40 billion by 2025. The report speculated that during the first years after the launch of ETH 2.0, there would be more adoption of the coin and an increase in staking payouts to $20 billion, while by the end of 2025, it could reach $40 billion.
Next Sunday, an Ethereum-based computer game, Decentraland, will host a virtual live music festival called “To The Moon”. Decentraland is a decentralized virtual reality platform powered by the Ethereum blockchain. It is a browser-based and crypto-powered online game with Minecraft-style and Second Life-style socializing. The Ethereum based in-game currency, by the name of MANA, is used to buy in-game items.On the other hand, the
ETH/USD also remained green for the day because of the weakness in the US dollar. The greenback was under pressure on Friday as the US jobs report from the Labor Department suggested a rise in the unemployment rate in June. The US Dollar Index dropped to 92.24, from its daily high of 92.74, and made the greenback weak against its main rival currencies, ultimately supporting the
ETH/USD prices.
Another reason behind the rising prices of the ETH/USD could be the fact that Bitcoin has reclaimed the $35,000 level. Most of the other altcoins also charted gains, with Ethereum jumping above $2,300 for the first time since June 15.
ETH/USD – Daily Technical Levels
Support Resistance
2310.32 2342.38
2299.63 2363.75
2278.26 2374.44
Pivot Point: 2331.69The
ETH/USD pair is trading with a bullish bias at 2,274, and facing immediate resistance at the downward trendline level of 2,415. On the higher side, a bullish breakout at 2,415 could extend the buying trend until 2,627 and 3,020. At the same time, the support level is holding at 2,011, whereas a breakout at 2,011 could extend the selling trend until the 1,706 level. The MACD and
RSI suggest a buying trend in the
ETH/USD; however, the 50 EMA is extending solid resistance at 2,416. Thus, buying will only be possible if ETH manages to break over the 2,415 level. Good luck!
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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