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Ethereum - ETH/USD Chart

Ethereum Tests Intraday Pivot Point – Worth Placing a Buy-stop at 3,225?

Posted Tuesday, August 17, 2021 by
Arslan Butt • 2 min read

The ETH/USD closed at $3,146.57 after placing a high of $3,334.21 and a low of $3,134.38. ETH/USD dropped on Monday, turning red for the day, despite some positive developments surrounding the Ethereum ecosystem. The renowned software developer, Microsoft, has shown interest and revealed plans to tackle piracy through blockchain technology.

Research by Microsoft on a blockchain-based incentive system

According to research conducted by Microsoft, in collaboration with Alibaba and Carnegie Mellon University, a blockchain-based incentive system could be used to bolster anti-piracy campaigns. The proposed incentive system for anti-piracy campaigns, which will go by the name of Argus, will be fully transparent. It will be built on the Ethereum blockchain and will offer a trustless incentive mechanism that will secure collected information from the open, anonymous population of piracy reporters. 

This came after many global tech organizations became concerned about protecting their intellectual property, and expressed their intention of taking various steps to eradicate digital piracy. This news should positively impact the ETH/USD prices. Nevertheless, the second-largest cryptocurrency remained under pressure on Monday.

ETH/USD [[-graph]]

$170 million worth of Ethereum has been burned since August 5

On the flip side, it was also reported that about $170 million worth of Ethereum had been burned since August 5, when the London hard fork upgrade went live. According to the data tracking website, Watch the Burn, about 52,600 ETH was burned in just 12 days, which shows that EIP-1559 is working correctly in devaluing the ETH token, so as to eventually drive the prices upward. In another study from Etherscan’s historical average “daily gas used” chart, the recent London hard fork upgrade to the Ethereum network has increased the network’s capacity by about 9%.

Furthermore, recent news from Dallas showed that a sibling duo has been earning thousands of dollars monthly, by mining Ethereum. The report suggested that Ishaan and Anaya Thakur made money with their computers, while most kids were using theirs to play video games. The brother and sister are reported to collectively make $32,000 a month from the Ethereum mining operation they initiated in their garage.

 

Ethereum - ETH/USD Chart
Ethereum – ETH/USD Chart

Ethereum (ETH/USD) Technical Levels

Support             Resistance

3,075.89            3,275.72

3,005.22           3,404.88

2,876.06          3,475.55

Pivot Point:     3,205.05

Ethereum (ETH/USD) Daily Technical Forecast

On the technical front, the ETH/USD pair is trading with a neutral bias, below the intraday pivot point resistance level of 3,205. At the same level, the 50-period simple moving average also provides solid resistance at around 3,235 and immediate support at around 3,115.  

On the lower side, a breakout at 3,115 could trigger additional selling until the next support levels of 3,075 and 2,999, whereas the resistance remains at 3,206 and 3,280. The leading technical indicator, the RSI, is holding in a sell zone on the hourly timeframe, while the 50 SMA is also on a selling trend. Thus, the chances of a selling trend remain solid on Tuesday. Let’s consider taking a buying trade over 3,205 and selling below the same level. Good luck!

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