Technical Analysis

ETH/USD Analysis – June 10, 2021

By LonghornFX Technical Analysis
Jun 10, 20213 min

Choppy Session Continues!

The ETH/USD was closed at $2610.65 after placing a high of $2610.65 and a low of $2461.43. After declining for two consecutive sessions, ETH/USD rose and posted slight gains on Wednesday. Most of the bullish trend triggered amid the prevailing improved market sentiment driven primarily by upbeat bitcoin prices. Lately, the Ethereum network's transaction fees have fallen to their lowest level since the beginning of the year as the crypto market cooled down following the recent market crash in May. The entire crypto-market came under pressure during mid-May after Tesla announced that it was no longer accepting bitcoin as payment. The downfall was further escalated by the news that China was going against all cryptocurrency activities, including mining and trading. Since then, the market has found it challenging to reclaim its previous levels.

The down-trending market has some advantages, including the decline in demand for digital assets, resulting in a drop in transaction fees. According to data from BitInfoCharts, the Ethereum network's average transaction fee dropped to a low of $3.70 over the weekend, which was the lowest level since the end of December 2020. However, the transaction fees have climbed to $5.45 amid the increased activity in the network.

Another reason behind the upward trend in the Ethereum prices was the news from EL Salvador that BTC will be officially recognized as legal tender and will allow people to use it to spend for goods and services in the Central American country. The uptick caused by this news raised the overall market cap for all cryptocurrencies combined back above $1.5 trillion and has halted the declining prices of all markets for the moment that began in mid-April. Besides, the U.S. dollar that negatively correlated with the ETH/USD remained flat throughout the day but ended the day with minor gains. The U.S. Dollar Index (DXY) dropped 89.84 on the day and helped Ethereum post higher gains on Wednesday.

ETH/USD Intraday Technical Levels

Support Resistance

2511.17 2660.39

2411.69 2710.13

2361.95 2809.61

Pivot Point: 2560.91

ETH/USD - Technical Outlook

The ETH/USD consolidates at a 2,529 mark, 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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