Brace for US NFP data
After hitting a high of $3840.00 and a low of $3384.89, the ETH/USD pair was closed at $3835.96. For the second session in a row, ETH/USD increased its gains, reaching its highest level since the beginning of May near $3500. After the demand for NFTs and DeFi apps increased significantly in recent months, Ethereum, the native token of the most-used blockchain, soared over 36% in August and started the new month with tremendous gains.
Braintrust, a decentralized talent network, has published its BTRST token on the Ethereum main net to expand its services' acceptance. Since its inception in June 2020, the project has generated around $31 million in gross services revenue. The startup has tripled in size and listed Goldman Sachs, American Eagle Outfitters, Atlassian, Porsche, Under Armour, and Wayfair among its clients. The average monetary worth of a project listed on its network has climbed to $57,000, with some projects reaching $300,000.
According to the firm, the new currency will have a limited amount of 250 million tokens, and its distribution has given over 50,000 people direct ownership of the network. The value of ETH/USD increased as a result of this announcement, as the Ethereum blockchain for the development of such projects was fast expanding.
Another factor contributing to the rise in ETH/USD pricing is the recent ETH upgrade London hard fork, which has begun burning a portion of its gas fees. The implementation of EIP-1559 has reduced over 156,986 ETH worth $555 million from the supply, making the ETH currency deflationary over time while also increasing the value of ETH/USD.
Furthermore, despite its increased costs, the rising demand for Ethereum blockchain for NFTs and DeFi apps, despite the supply pressure caused by EIP-1559, contributes to further improvements in the value of ETH/USD. There are almost 200,000 ERC tokens on Ethereum, some of which are among the top 100 cryptocurrencies. According to reports, the total value of the Ethereum-backed DeFi protocol has surpassed $100 billion.
Furthermore, the ETH/USD surge was aided by the falling value of the US dollar. The dollar has been under severe pressure since August's ADP job creation statistics fell short of expectations. The poor jobs report weighed on the dollar, which was already weakening due to Jerome Powell's dovish statements at the Jackson Hole symposium. Because both have a negative connection, the US Dollar Index, which measures the greenback's value against a basket of six major currencies, declined to 92.5, helping ETH/USD gain for the day.
ETH/USD Intraday Technical Levels
Pivot Point: 3686.95
ETH/USD - Technical Outlook
The ETH/USD pair is trading sideways at 3,786 level, facing immediate resistance at 3,836 level. Overall, the pair is maintaining a broad trading range of 3,836 – 3,710 levels. A breakout of this range will determine further trends in the ETH/USD pair.
On the downside, the breakout of 3,736 support levels exposes the pair to 3,669 and 3,619 levels. Alternatively, the breakout of the 3,836 level exposes the ETH/USD pair until the 3,903 mark. The major focus will remain on the US NFP data as this can drive additional trends in the ETH/USD pair today. All the best!
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