ETH/USD Analysis – October 29, 2021

Ethereum Enters Overbought Zone

The ETH/USD ended the day at $4234.51, having reached a high of $4239.44 and a low of $3895.91.ETH/USD reversed its course and pulled higher on Thursday, recovering almost all of its previous session’s losses. The sudden rise in ETH/USD price on Thursday could be attributed to the release of the Altair upgrade to the network, which pushed the migration to Ethereum 2.0 another step closer. The Altair upgrade introduced solutions to the Beacon chain. It is a warm-up upgrade to Ethereum 2.0 merging. The release of the upgrade raised the confidence of several investors in the network’s planned merging.

The Altair, which was successfully launched on Wednesday, is the first network upgrade on the Ethereum proof-of-stake chain. It has been almost one year since the Ethereum Beacon chain went live, and the new developments are increasing the confidence of investors that the Beacon chain will merge soon. The final merge is expected to happen in December, and before that, Altair worked as a warm-up upgrade, setting the network ready for the final merge. Given this release of a new upgrade, the prices of ETH/USD saw a sudden surge on Thursday and reached the $4239.33 level.

With the increased level of competition in the market, the second-largest cryptocurrency in the world has been facing heavy pressure. However, as the network is moving closer day by day towards the merge to Ethereum 2.0, the crypto token has been finding some ground against its rival tokens.

On the flip side, an Ethereum DeFi protocol named Cream Finance suffered another hack. The attackers used a flash loan attack and made away with $130 million. The company revealed through Twitter that they were investigating the cause of the hack. This news capped further upward momentum in ETH/USD.

ETH/USD Intraday Technical Levels

Support Resistance

4023.80 4417.33

3763.09 4550.15

3630.27 4810.86

Pivot Point: 4156.62

ETH/USD - Technical Outlook

The ETH/USD is taking a bearish turn after testing a resistance level of 4412. Ethereum has closed with a Doji and a bearish engulfing candle at the 4412 level, which supports the odds of a bearish correction. On the bearish side, the ETH/USD's immediate support prevails at the 4,151 level extended by an intraday pivot point level. The break below this level exposes the ETH/USD price towards the 4,023 and 3,760 levels. A further bearish breakout exposes the pair to 3,630. These levels are being extended by 38.2% and 61.8% Fibonacci retracement levels. On the bullish side, Ethereum's immediate resistance holds around 4,417 and 4,550 levels. "Bearish bias" dominates below the 4,412 level today. All the best!