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Technical Analysis of ETH/USD for July 23, 2020
Crypto Industry News:
Vitalik Buterin warns that the high fees that are in force on the Ethereum network today threaten the security of the project. He called for a reform of the fee system.
The co-author of the project believes that this is a dangerous phenomenon in terms of network security:
“High fees are dangerous. The point is that miners’ increasing dependence on transaction fees may encourage them to engage in selfish practices that will allow them to generate more profits. But it may increase the risk of disruptions in the processing of the transactions themselves,” Buterin said.
Buterin’s comment comes now as web users notice that they already have to pay transaction fees higher than 100 gwei. He himself advocates implementing the Ethereum Enhancement (EIP) 1599. This is to help reform the Ethereum fee system. This includes “burning” base charges to reduce miners’ reliance on transaction tariffs.
Technical Market Outlook:
The ETH/USD pair has been continuing the impulsive wave up and made a massive up candle with the high at the level of $269.47. The bears had tested the local support located at the level of $258.91 and are pushing the ETH/USD up again. The key technical support is located between the levels of $252.03 – $248.86. The momentum is still positive abd strong, so the Ethereum bulls can still attack the technical resistance located between the level of $272.02. The key target for bulls is seen at the level of $288.01, which is the high from February 2020.
Weekly Pivot Points:
WR3 – $258.07
WR2 – $250.97
WR1 – $242.31
Weekly Pivot – $235.59
WS1 – $227.18
WS2 – $291.82
WS3 – $211.48
Trading Recommendations:
The volatility on Ethereum is now lower than usual, so all the dynamic moves up and down might reverse quickly. The larger time frame trend on Ethereum remains down and as long as the level of $288 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred. The next key technical support is seen at the level of $174.82.
The material has been provided by InstaForex Company – www.instaforex.com
