Ethereum Violates Symmetrical Triangle Pattern – Ready to Sell below 3,135?
Arslan Butt•Friday, August 27, 2021•3 min read
The ETH/USD closed at $3,092.48, after placing a high of $3,249.50, and a low of $3,055.01. The ETH/USD declined on Thursday, despite various positive fundamentals, amid the recent depressed market sentiment and the rising price of the US dollar. A venture capitalist, Bill Gurley, who has a huge amount of credibility in the investment space, reports that he has moved his investment into Ethereum, because he likes the adaptability and pragmatism associated with the community. Gurley is a partner at the Silicon Valley VC firm, Benchmark, and he revealed that the Ethereum investment was his own, and not that of the company.
He is confident about the growth potential of the Ethereum Network, after the upgrade of the network to ETH 2.0 and the proof-of-stake consensus model. The upcoming improvements would make the network more sustainable and scalable, and Gurley was impressed with the number of developers working on the Ethereum blockchain. This news added to the value of ETH, and prevented further losses in the ETH/USD on Thursday.
Meanwhile, macro analyst and co-founder of Real Vision, Remi Tetot, recently talked about the recent price fluctuations in Bitcoin and Ethereum. He compared the price movements of the two most prominent cryptocurrencies in the world, and said that Ethereum had the potential to cross the $15,000 mark in the next six months. He cited the network development of ETH 2.0 as one of the reasons behind the predicted price action for the ETH/USD. This news also favored the ETH/USD, but the cryptocurrency remained under pressure for the day.Furthermore, the CEO of an independent financial consultancy from deVere Group, Nigel Green, has said that he believes that ETH will overtake the flagship cryptocurrency,
BTC, within five years, given more utility and demand for the network. He also compared the growth in price movement for both cryptos, saying that Ethereum had risen about 240% so far this year, while BTC rose only 38% in the same period. The optimistic predictions relating to ETH/USD favored its prices. However, the crypto remained on the back foot, given the recent sell-off in its prices.
Furthermore, a blockchain application and SaaS solutions provider, Powerbridge Technologies, has arranged the purchase of 5,600 BTC and ETH mining rigs for an undisclosed amount. On Wednesday, the China-based company announced that it had entered into a purchase agreement with Cryptodigital Holdings, in an effort to acquire the miners. The delivery of about 2,000 BTC mining machines and 3,600 ETH miners will begin in October 2021.
On the other hand, the rising prices of the US dollar could also be behind the declining prices of the ETH/USD on Thursday. The US Dollar Index was high onboard, amid the improved market sentiment, after the full approval of the Pfizer vaccine. Furthermore, the price of the greenback was also high, ahead of the Jackson Hole symposium, where the Fed will announce its future stance on monetary policy. Investors are awaiting the speech by Fed chair Jerome Powell, who is expected to give hints about the tapering of asset purchases. The ETH/USD dropped after the rise in the price of the US dollar, as the two are negatively correlated.
Ethereum – ETH/USD – Daily Technical Outlook
The second most popular crypto pair, ETH/USD, is currently trading at around 3,105, with a neutral bias. The 3,050 level is providing immediate support, while the 3,138 level is providing resistance. A bullish crossover above 3,140 might push the price of ETH towards the 3,224 and 3,333 levels. The Stochastic is at 51, indicating that the
ETH/USD pair is in a bullish trend.
Daily Technical Levels
Support Resistance
3,015.16 3,209.65
2,937.84 3,326.82
2,820.67 3,404.14
Pivot Point: 3,132.33To the downside, the selling momentum for the pair is exposed till the 2,943 and 2,83 support levels, as the 3,050-support level has been broken. The pair is creating neutral candles within a limited trading range of 3,140 and 3,050, with the breakout from this area determining the future development of the
ETH pair today. Best wishes.
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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