Technical Analysis of ETH/USD for July 3, 2020
Crypto Industry News:
Ethereum 2.0 was created to improve the scalability and performance of the native blockchain. Let us remind you that in the near future the network co-created by Vitalik Buterin is shifting from the PoW to PoS consensus.
The co-founder of Ethereum reminded that the transition to ETH 2.0 will not happen overnight. Either way, it will ultimately lead to network scaling with 100,000 transactions per second (TPS).
Buterin has confirmed that the network will have to settle for current off-chain scaling solutions for the next two years. This will continue until developers finally realize their plans for new Ethereum 2.0 scaling options:
“ETH2 scaling for data will be available * before * ETH2 scaling for general computation. This implies that rollups will be the dominant scaling paradigm for at least a couple of years: first ~ 2-3k TPS with eth1 as data layer, then ~ 100k TPS with eth2 (phase 1). Adjust accordingly ” – tweeted Buterin.
The launch date of ETH 2.0 remains unclear and the planned implementation is being delayed. The first launch was to take place in January this year. As we know, ETH 2.0 is being implemented in stages. Afri Schoedon, test network coordinator ETH 2.0, said in May that based on the current progress of the project, phase 0 is likely to occur at the end of this or early next year. In the initial phase, a beacon chain will be launched to implement proof-of-stake.
According to Bitinfocharts data, within 48 hours to June 30 the median transaction fee on the Ethereum blockchain increased by 60%, increasing from USD 0.23 to USD 0.37. Despite the sudden increase, this means a continuation of the trend in which the median ETH transaction fees increased by 510%.
Technical Market Outlook:
After the Doji candlestick pattern was made at the top ot the move up that retrace 50% of the last wave down, the ETH/USD pair had dropped significantly. The short-term trend line dynamic support has been broken as well. The market has hit the intraday support located at the level of $221.31, but it was not clearly violated yet. Nevertheless, the odds for another low are high as the momentum is still weak and negative. The next target for bears is seen at the level of $217.65 and $209.89.
Weekly Pivot Points:
WR3 – $273.84
WR2 – $260.74
WR1 – $240.04
Weekly Pivot – $227.40
WS1 – $206.35
WS2 – $194.36
WS3 – $173.30
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