Ethereum (ETH/USD) to Exhibit Bearish Price Action – Quick Update on Sell Signal!
The ETH/USD was closed at $2032.26 after placing a high of $2166.87 and a low of $2008.94. ETH/USD fell to its lowest level
Arslan Butt•Tuesday, July 13, 2021•2 min read
The ETH/USD closed at $2,032.26, after placing a high of $2,166.87, and a low of $2,008.94. On Monday, the ETH/USD fell to its lowest level since June 28, with the cryptocurrency facing pressure for the day. The recent decline in the prices of the ETH/USD was driven by the latest announcement by an Australian energy trading company, Power Ledger, that announced on Monday, that it would migrate its blockchain platform from Ethereum to Solana. This migration is expected to improve the Energy Blockchain of the company.
In a press release on its website, Power Ledger revealed that the migration from Ethereum to Solana would provide the company’s Energy Blockchain with a faster blockchain infrastructure, to support high transaction output. The company also said that the new blockchain platform, based on Solana, was faster than Ethereum, and could support the services provided by an energy trading company like Power Ledger. The press release also praised the unique Proof-of-History mechanism used by Solana, that has a short block time of 400 milliseconds and a transaction speed of 50,000 TPS. All of this was within a Layer 1 blockchain network, and Power Ledger also noted that it would provide its customers with delegated staking opportunities on the new Powerledger Energy Blockchain.
The Executive Chairman at Power Ledger, Dr. Jemma Green, said that the new blockchain platform would be tens of thousands of times faster than Ethereum, as well as being energy-efficient. She added that the company started this project to allow renewables to be scaled, as a part of their mission was to reduce their carbon footprint. This announcement by Power Ledger put added weight on the
ETH/USD and dragged its prices to the downside.
Furthermore, the strength in the US dollar is being driven by the shift of investor interest to the release of
CPI data from the US. The greenback remained high on board, as the DXY reached 92.42, which ultimately added to the losses in the ETH/USD, as the two are negatively correlated.
ETH/USD Daily Technical Levels
Support Resistance
1,971.85 2,129.78
1,911.43 2,227.29
1,813.92 2,287.71
Pivot Point: 2,069.36
ETH/USD – Technical Outlook
On the technical front, the
ETH/USD is trading at the 1,990 level, and the formation of a bearish engulfing pattern on the 4-hour timeframe supports the odds of a solid selling bias. At the moment, the second leading cryptocurrency is looking to violate the support level of 2,005, and closing of a candle below this level will provide confirmation of a breakout. On the lower side, the next support prevails at 1,960 and 1,896 today. Ethereum has also violated the upward trendline at 2,085, boosting the selling bias for the coin. Let’s consider taking a sell trade below the $2,000 level, in order to capture quick selling until the 1,960 level today. 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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