Upward Trendline Supports at $2,290
The ETH/USD was closed at $2299.52 after placing a high of $2344.70 and a low of $2244.23. ETH/USD remained flat throughout Wednesday’s trading session as the cryptocurrency closed its day on the same level it started its day with.
After rising for seven consecutive sessions, ETH/USD remained flat for the day as investors started moving in the other direction. The Ethereum network successfully crossed 200,000 validators which means the 200,000 validator nodes were running ahead of the ETH 2.0 launch.
The staked ETH now amounted to over 6.6 million coins, with a total of over $14 billion worth of ETH currently staked in the network. About 20,000 validators had been added to the network in a span of a month, which makes the validators number over 200,000 from 180,000. The number of investors staking their coins has been increasing day by day in anticipation of the upgrade to ETH 2.0 expected to bring rewards for the validators. Recently, the amount of staked ETH has reached about 5% of the entire circulating supply of ETH.
Meanwhile, Coinbase reported that the trading volume of ETH increased more than the trading volume of bitcoin in the first half of 2021. The report suggested that the trading volume of Ether grew three times faster than that of bitcoin during the first half of 2021.
The ETH volume rose by more than 1400%, with a total of $1.4 trillion, while the Bitcoin volume increased by 489% and reached $2.1 trillion. Coinbase took data from 20 trading venues and released a report suggesting an increase in Ether’s trading volume by 1461% during the first six months of 2021 whereas, bitcoin’s trading volume rose by 489% the same period. This news added further strength to the ETH/USD on Wednesday.
Moreover, the CEO of the large Swiss-based banking institution Vontobel Bank, Zeno Staub, said their clients were increasingly interested in cryptocurrencies. He further praised the blockchain technology for its security and reliability and said that their customers were interested in digital assets. These comments from Vontobel Bank CEO added strength in the whole cryptocurrency space that also benefited ETH/USD.
Furthermore, the declining prices of the U.S. dollar on Wednesday after the disappointing Federal Reserve meeting statement also supported the prices of ETH/USD. The U.S. dollar index that measures the greenback value against the basket of six major currencies fell to 92.24 level and pushed ETH/USD higher as both have a negative correlation.
ETH/USD Intraday Technical Levels
Support Resistance
2247.60 2348.07
2195.68 2396.62
2147.13 2448.54
Pivot Point: 2296.15
ETH/USD - Technical Outlook
The ETH/USD is also trading with a bullish bias at a 2,279 level. However, the pair has retraced back from the multi weeks the high level of 2,406 level. The MACD and other leading indicators entered the overbought zone, triggering a Fibonacci retracement in Ethereum. On the chart above, the ETH/USD has completed 38.2% Fibonacci retracement at 2,150 level, and the upward trendline is now extending support at the same level. A bearish breakout of 2,150 levels exposes ETH towards 2,050 and 2,008 support levels. At the same time, the resistance continues to hold at 2,325 and 2,406 levels. Bullish bias seems dominant on Wednesday. All the best!
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