Symmetrical Triangle Pattern
The ETH/USD was closed at $2507.15 after placing a high of $2591.92 and a low of $2484.32. ETH/USD extended its decline for 2nd consecutive session o Tuesday despite the news that it was on track to surpass Bitcoin's market cap. According to Bloomberg, Ethereum's race to outperform Bitcoin was tied to several of its use cases. Ethereum is used as a platform where the DeFi industry works; NFTs also run on the Ethereum blockchain. Furthermore, the native token, Ether, plays an essential role in the ecosystem of the crypto market. The report suggested that Ethereum's market share has reached half of the market share of Bitcoin as it has been steadily eating the share of bitcoin.
Meanwhile, the CEO of Tesla and the big influencer, Elon Musk, agree with the co-founder of Ethereum, Vitalik Buterin, about a collaboration between Ethereum and Dogecoin. Buterin said that it would be amazing if we could have a secure bridge between Ethereum and Dogecoin. Ethereum co-founder talked about a potential collaboration between both coins, and Elon Musk, also known as Dogefather, appreciated the idea and agreed to Buterin.
Nevertheless, Dominic Williams, the founder of Dfinity and its Internet Computer, bashed the scaling solutions put forward by Ethereum and Polkadot for offering a disjoint user experience. He criticized the upcoming Ethereums ecosystem of layer-two solutions as it could expose users to counterparty security risks.
Ethereum decline on Tuesday could also be attributed to the rising prices of the U.S. dollar for the day as they both are negatively correlated. The U.S. Dollar Index (DXY) that measures the greenback value against the basket of six major currencies rose by 0.2% and reached the 90.18 level that added extra pressure on the prices of ETH/USD. The dollar was strong across the board, mainly because the investors were awaiting the release of the CPI report scheduled for Thursday. Investors believe that the CPI report will force Federal Reserve to start tapering the monetary measures, and hence, the dollar retreated.
ETH/USD Intraday Technical Levels
Support Resistance
2656.22 2740.51
2600.03 2768.61
2571.93 2824.80
Pivot Point: 2684.32
ETH/USD - Technical Outlook
The ETH/USD is trading at a 2,529 level, having bounced off over the double bottom area of 2,326. On the 4-hour chart, the ETH/USD pair is now facing resistance at 2,547 level that's being extended by a previously violated support level which currently is working as a resistance. At the same time, the upward violation of the 2,547 level can lead the ETH/USD pair towards the 2,662 level. The 50 periods EMA is extending, suggesting bearish bias and its extending resistance at 2,662 level. On the higher side, a bullish crossover of 2,662 level can extend buying trend until 2,844. All the best!
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