Ethereum Completes 38.2% Fibonacci Retracement!
The ETH/USD was closed at $2648.50 after placing a high of $2648.50 and a low of 2097.31. After declining over the weekend for three consecutive days, ETH/USD recovered most of its losses and gathered some strength to remain green for the day.
On Sunday, the co-founder of Ethereum, Vitalik Buterin, published a post on various scalability solutions for blockchains and explained how Musk's increasing parameters were inadvisable. This post responded to Elon Musk's claims of speeding up the Dogecoin network by simply increasing protocol parameters. Buterin highlighted the importance of decentralisation in response to Musk's claims regarding Dogecoin's scalability. Musk has said that DOGE will become the leading chain if it pushes its block size by 900%.
Whereas, Buterin said that the attention of Musk was only on scalability, and for the matter, he was not even focusing on things that make the blockchain what it is. However, Musk could not stop himself from reacting to this post by Buterin and tweeted on Monday that Vitalik fears the Dogecoin. This came eventually as a response to Buterin for criticising his claims on blockchain scalability.
Meanwhile, an American multinational financial services company, Goldman Sachs Group Inc, has also shared its views on the controversy between Bitcoin and Ethereum. The bank was in support of the latter. According to a research report leaked by experts from Goldman Sachs, the bank analyzed and tackled the key arguments that back Ethereum to overtake Bitcoin as a primary store of value in the future.
The leaked report from Goldman Sachs suggested that Ethereum, the second-largest cryptocurrency with a market capitalization of $250 billion, has a good chance of overtaking bitcoin as the dominant store of value. The support to Ethereum was given due to its working as a host to a large number of DApps and smart contracts. The bank added that most Defi apps were being built on the Ethereum network. Most NFTs issued were being purchased using Ether, which increases Ether versus bitcoin transactions and reflects the dominance. Given this news, Ethereum prices took a U-turn and recovered almost 3/4th of their previous 3-days losses on Monday and reached a $2648 level. Meanwhile, the U.S. Dollar Index (DXY) that measures the greenback value against the basket of six major currencies also remained weak across the board and dropped to 89.76 level, supporting the rising prices of ETH/USD on Monday.
ETH/USD Intraday Technical Levels
Support Resistance
2281.04 2832.23
1913.58 3015.96
1729.85 3383.42
Pivot Point: 2464.77
ETH/USD - Technical Outlook
The ETH/USD is trading at 2,658 level, bounced off over the double bottom area of 1,815. On the 4-hour chart, the ETH/USD pair is now facing resistance at 2,715 level that's being extended by a downward trendline. At the same time, the violation of the 2,715 level can grow the ETH/USD pair towards the 2,962 level. The 20 and 50 periods EMA are extending mixed sentiments as the ETH is holding above 20 EMA and below 50 EMA. Besides, the ETH/USD pair has completed 38.2% Fibonacci resistance, and now the ETH/USD is likely to face resistance at the same level of 2,715 level. All the best!
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