After hitting a high of $3,558.99, and a low of $3,215.32, ETH/USD finished at $3,499.27. After a big sell-off on Tuesday after the flash crash, ETH/USD reversed course on Wednesday, turning green for the day.
After a big sell-off during the previous session, Ether, the second most valuable cryptocurrency by market capitalization, reversed direction on Wednesday. The flash crash on Bitcoin Day in El Salvador contributed to the increased selling pressure.

However, following research published by the British firm Standard Chartered, which showed an optimistic leaning for ETH in the future, the price of ETH gained support on Wednesday and reversed its direction. On Wednesday, Standard Chartered, British global banking and financial services conglomerate, released The Ethereum Investor Guide, authored by the analysts at the bank.

According to the paper, while BTC and ETH have a lot in common, the Ethereum blockchain provides more, such as smart contracts, decentralized autonomous organizations, decentralized finance, non-fungible token assets, and initial coin offerings. According to bank analysts, Ethereum’s value might reach $26,000 to $35,000 in the long run. This report from Standard Chartered bank boosted market confidence and pushed the price of ETH/USD higher.

Furthermore, the news that Oscar-winning actress, Reese Witherspoon, who is known for her roles in films such as “Walk the Line” and “Little Fires Everywhere,” has announced that she has entered the crypto space and has purchased Ethereum for the first time, could have contributed to the rising prices of ETH/USD on Wednesday.

Meanwhile, Ethereum’s average network costs increased by 300 percent on Tuesday, owing to the market crash and a hyped project minting event. The Sevens, an NFT project, had its presale on September 7, the same day El Salvador proclaimed Bitcoin legal tender. Many users complained about extremely expensive gas costs while processing The Sevens presale transactions, and some others mentioned that they lost so much money on fuel that the transaction failed anyhow.

Meanwhile, due to the increased volume of requests for transactions on exchanges, in an attempt to sell holdings and avoid further losses following the last flash crash in the market, ETH fees have risen. This occurs whenever there is an abrupt change in either direction.

Ethereum (ETH/USD) – Technical Outlook

Above the 3,385 barrier, the Ethereum price forecast remains optimistic. Ethereum is projected to find immediate resistance at the 3,612 level in the 4-hour timeframe. A 61.8 percent Fibonacci correction level is extending this resistance level. Furthermore, the closing of candles below this level suggests strong odds of a selling trend in Ethereum.

Ethereum was previously trading in an oversold zone. However, it has now come out of the oversold zone, and it is heading towards completing the 61.8% Fibonacci correction level.

The 50-period exponential moving average on the 4-hour timeframe is likely to present resistance around the 3,700 level. Simultaneously, the most important technical indicator, the Stochastic RSI, has entered the purchasing zone.

On the bearish side, it is anticipated that the 3,384 level will provide quick support. A bearish breach below this level is expected to open up more selling space until the next support level of 3,232 is reached. Good luck!