Crypto Industry News:
For the first time since the introduction of the fee-burning mechanism, the Ethereum network reached its first deflationary week in history. The main reason for this result is increased network load and high fees.
Net emissions hit -59 ETH this week, equivalent to $ -250,700. Tipping for miners remained at $ 56 million, and the amount burned was close to $ 400 million in one week.
The total number of Ethereum coins burned is 712,000 ETH, which at the time of writing this publication was worth just over $ 3 billion. As the grid burn rate continues to increase, ETH may experience more "negative" weeks or even months in the near future.
The persistence of negative emissions will confirm that ETH has become a deflationary asset. In times of accelerated inflation, this may attract more and more investors.
Technical Market Outlook
The ETH/USD pair has made a new ATH at the level of $4,459, but the rally from the level of $3,890 had ended with exhaustion candlestick pattern, so the corrective cycle is currently developing. Recently, the bulls has manage to break out of the descending channel as well. The nearest technical support is seen at the level of $4,274 - $4,243 and the key short-term technical support is currently located at the level of $4,121. The larger time frame trend remains up and the outlook for the nearest week is bullish.
Weekly Pivot Points:
WR3 - $5,137
WR2 - $4,787
WR1 - $4,556
Weekly Pivot - $4,216
WS1 - $3,997
WS2 - $3,650
WS3 - $3,426
Trading Outlook:
The next long-term target for ETH is seen at the level of $5,000. Nevertheless, in order to continue the long-term up trend, the price can not close below the technical support at the level of $2,906. The level of $1,728 (61% Fibonacci retracement of the last big impulsive wave up) is still the key long-term technical support for bulls. The level of $3,677 is the key mid-term technical support for bulls.
