Bullish Engulfing to Support Buying
The ETH/USD was closed at $3047.01 after placing a high of $3237.89 and a low of $2980.41. On Thursday, ETH/USD turned red despite the Ethereum network's latest upgrade continuously burning the base fees for a week straight.
ETH burned has hit $100 million, and over 32,000 burned ETH in the cryptocurrency space in only seven days. According to the latest estimate, the burn rate is expected to hit 4 ETH per minute very soon. Recently the burn rate has reached around 3.38 ETH per minute. In monetary terms, about $10,000 has been burning per minute, and the price is rising day by day.
All this burning has raised hopes that it will eventually make the nature of ETH deflationary. However, it was still very far as the burning of base fees was at early stages right now. The burning of base fees will reduce the supply of ETH in circulation, making ETH more valuable and would drive up the prices of the second leading cryptocurrency.
Meanwhile, a Delaware-based Kryptoin Investment Advisors has also filed with SEC for an Ethereum exchange-traded fund. The company previously tried and failed to get approval for bitcoin ETF greenlit back in 2019. In April 2021, it came back with another attempt and filed for a Bitcoin ETF; however, the SEC is still under investigation.
On Thursday, the company announced that the Krypto in Ethereum ETF Trust has projects to publish its ordinary shares on the Chicago Board Options Exchange's BZX Exchange under a ticker that will be announced before the commencement of trading. This news should have pushed ETH/USD prices higher. Still, the cryptocurrency remained under pressure amid the bullishness of the greenback along with the recent sell-off after investors started booking profits at a three-month high level.
The U.S. Dollar Index that measures the greenback's value against the basket of six major currencies rose above 93 levels on Thursday as the macroeconomic data related to PPI favored the currency. Furthermore, the sooner-than-expected rate hike and tapering by Federal Reserve amid the improvement in the Jobs sector and inflation added further strength to the U.S. dollar that ultimately kept ETH/USD lower as both have a negative correlation.
ETH/USD Intraday Technical Levels
Support Resistance
2938.99 3196.47
2830.96 3345.92
2681.51 3453.95
Pivot Point: 3088.44
ETH/USD - Technical Outlook
The ETH/USD is trading with a bullish bias at a 3,199 level on Friday. The second leading cryptocurrency has crossed over the 50-day simple moving average, and a bullish crossover of 3,150 levels exposes the pair towards a 3,260 resistance level. On the hourly timeframe, ETH/USD has formed a bullish engulfing candle supporting a buying strong buying trend. The ETH/USD's immediate support prevails at 3,150, a 50 SMA extends that, and below this, the double bottom pattern will support at 3,085. Furthermore, the 2,975 level will be supporting the ETH/USD in case of a 3,080 breakout. On Friday, the bullish bias dominates the ETH/USD pair. All the best!
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