Technical Analysis of ETH/USD for July 7, 2020

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Crypto Industry News:

Data from the second quarter of 2020, show a huge increase in the number of decentralized applications in all ecosystems, especially those managed by DeFi Ethereum. Decentralized exchanges were in the first line of growth when token mining activities flowed into chain exchange solutions.

According to the data, Curve was one of the largest beneficiaries because it helped users switch between different stablecoin coins to maximize profits. Curve is an automated money market that only supports exchanges between different types of stablecoin coins and wrapped tokens. This limitation allows you to provide fees for the exchange of assets.

According to Q2 DappRadar, DeFi’s dominance indirectly led to a decrease in gaming activity. Over USD 2 billion was realized on DeFi platforms in the second quarter, which caused a sharp increase in gas prices. The living DApp ecosystem in Ethereum games suffered because fees accounted for a significant proportion of each transaction. DappRadar has seen a staggering 79% decline in online gaming activity in the previous quarter.

EOS seems to be the main “beneficiary” of Ethereum losses, as the volume of transactions in games increased by about 80% compared to the previous quarter. Although this is positive news for the platform, it still has not fully returned to the state from before the EIDOS dump at the end of 2019. Volumes remain well below records from the second quarter of the previous year.

Technical Market Outlook:

The ETH/USD has finally broken through the short-term trend line resistance around the level of $230 and bulls push the price towards the level of $243. The levels of $235.42 and $232.20 will now act as a local technical support for the price. Nevertheless, the Bearish Engulfing pattern has been made at the top of the move and the market reversed lower towards the level of $235.42. Any violation of this level will open the road towards the support seen at $232.20 or below. On the other hand, the next target for bulls is seen at the level of $243.71 and $248.86.

Weekly Pivot Points:

WR3 – $241.60

WR2 – $236.80

WR1 – $229.63

Weekly Pivot – $225.04

WS1 – $218.03

WS2 – $213.12

WS3 – $205.61

Trading Recommendations:

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

Source:: Technical Analysis of ETH/USD for July 7, 2020:

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