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Technical Analysis of ETH/USD for May 5, 2020
Crypto Industry News:
The number of Ethereum blocks has just reached 10 million. This is a significant milestone for the world’s second cryptocurrency in terms of market capitalization.
According to Luit Hollander, the Ethereum network needed over 15 ZH computing power to extract this huge number of blocks in five years. We remind you that the genesis block of the largest altcoin was mined on July 20, 2015.
Hollander writes:
“A noticeable number of forks appeared on our way to this milestone. Although the forks always divide the chain, the old chain is often abandoned, which is why they are sometimes called “network updates”.
10,000,000 Ethereum blocks is an achievement on the eve of the release of Ethereum 2.0. The transition to cryptocurrency to PoS (update referred to as Serenity) is expected to begin in July with the launch of Beacon Chain.
Technical Market Outlook:
The bears at ETH/USD pair has manage to push the price towards 38% Fibonacci retracement located at the level of $195.94. Moreover, the short-term trend line support has been violated as well and the price is testing the technical support at the level of $193.78.Nevertheless, the price bounced from lows seen at the level of $193.78 and is currently trying to test the trend line from below. The weak and negative momentum supports the short term outlook towards the next support located at $188.86 or even towards 50% retracement at $186.72.
Weekly Pivot Points:
WR3 – $296.61
WR2 – $243.36
WR1 – $224.05
Weekly Pivot – $205.69
WS1 – $188.49
WS2 – $168.64
WS3 – $150.80
Trading Recommendations:
The fear of the coronavirus consequences is very strong among the global investors and it rules on the financial markets. So far the global investors are not so keen to invest in cryptocurrency, because they are being perceived as risky assets. 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 material has been provided by InstaForex Company – www.instaforex.com
