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Ethereum - ETH/USD Chart

Ethereum Violates Upward Channel – Sellers Eyeing 2,400

Posted Tuesday, August 3, 2021 by
Arslan Butt • 3 min read

The ETH/USD closed at $2,479.56, after placing a high of $2,631.40, and a low of $2,454.99. The 13-day bullish streak in ETH/USD broke on Monday, reversing its course as the profit-taking began and the market sentiment reversed.

Joe Lubin, CEO and founder of a blockchain software company by the name of ConsenSys, said that Non-Fungible Tokens were doing a tremendous job of getting enterprises excited about the future of finance; however, regulations were still needed in order for them to achieve mainstream adoption.

 

ETH/USD

NFTs represent real-world objects, such as art, fashion, music and other things. Most NFTs have been launched by celebrities, athletes and other famous personalities, and the prices are high. Now the NFTs have started to draw the attention of corporations for business use cases.In simple words, Lubin believes that NFTs will not just summarize content through digital artwork or music, but that they will eventually evolve into full businesses in their own right. He added that the world was moving into a situation where NFTs will become objects with unique identities that can accept and pay money.

He added that NFTs enable artists and content creators to recognize that their intellectual property could have different rights and rates if they so desire. NFTs could be sold to various people and could also be monetized in flexible, programmatic ways. He continued, stating that it is exciting, from an enterprise perspective, that artists do not have to sell their souls to make a living.

Furthermore, Lubin said that almost every media company was thinking about launching its own NFT platform, or that the process was already underway. He mentioned examples, e.g. MediaPublishares, Esquire and other major magazines, that have announced partnerships with a decentralized ad network, or the development of an NFT platform for the fashion, art and music industries. Lubin’s comments boosted the price of the second strongest cryptocurrency, ETH. However, the ETH/USD remained under pressure, due to increased outflows booking profits from higher rates.

Another reason behind the increasing prices of the ETH/USD over the past two weeks was the upcoming launch of Ethereum 2.0. Investors are waiting for this launch, which is expected to increase the performance of the Ethereum platform and make it more cost-efficient. Analysts have suggested an increase in the price of the ETH/USD after the launch of a new upgrade, which is scheduled for release shortly.

On the other hand, the declining prices of the ETH/USD on Monday could also be attributed to the rising prices of the US dollar. The greenback was high on the board during the late American hours, after the hawkish comments by Christopher Waller, a governor of the Federal Reserve. Waller said that the Fed might start tapering its asset purchases as early as October, if the upcoming jobs data from August and September falls within a range between 800,00 and 10,000,000. These hawkish comments by one of the top officials of the Central Bank of the United States boosted the American currency and dragged the ETH/USD prices lower on the day.

Ethereum - ETH/USD Chart

Daily Technical Levels

Support         Resistance
2,522.18         2,678.30
2,437.38         2,749.62
2,366.06         2,834.42
Pivot Point:    2,593.50

Ethereum – ETH/USD – A Technical Outlook – Upward Channel Lends Support

On the technical side, the ETH/USD is trading with a bearish bias at 2,480. On the 4-hour timeframe, the ETH/USD has closed an upward channel that has already been violated at the 2,535 level. Closing of candles below this level is likely to lead the Ethereum price towards the next support level of 2,432. The 50 periods exponential moving average could support the coin at 2,410. However, the MACD and the RSI have entered the selling zone. Therefore, taking a sell position below 2,530 could be an excellent opportunity. Good luck!
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