Symmertical Triangle Pattern
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
2346.89 2418.95
2321.50 2465.62
2274.83 2491.01
Pivot Point: 2393.56
ETH/USD - Technical Outlook
The ETH/USD consolidates at a 2,329 mark, falling below the support level of 2,454 level. On the 4-hour chart, the ETH/USD pair is now facing resistance at 2,450 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 2,450 level can lead the ETH/USD pair towards the 2,633 level. The 50 periods EMA is extending resistance, suggesting bearish bias and its extending resistance at 2,450 level. On the lower side, the ETH/USD may find support at 2,272 and 2,162 level. All the best!
JOIN LONGHORNFX TODAY
24/7 live support, lightning fast withdrawals, guaranteed safe and reliable trading platforms with a true ECN broker.