Crypto Industry News:
Researchers from an Australian university have questioned Bitcoin's reputation as the best means of custody, saying Ethereum is on track to "become the world's first deflationary currency."
A November 18 article by four Australian scientists discusses how the Ethereum Improvement Proposal (EIP) 1559 update makes ETH a potentially better means of hoarding. The study was co-authored by Ester Felez-Vinas from the University of Technology Sydney, Sean Foley from Macquarie University, Jonathan Karlsen from the University of Western Australia and Jiri Svec from the University of Sydney.
The EIP-1559 update saw the network burn some transaction fees and over 1 million ETH. Sometimes, the report says, EIP-1559 burns daily transaction fees of more than 50% of the 12,000 newly minted ETHs. The researchers believe that as the demand for Ethereum grows due to its robust ecosystem of decentralized financial applications, even more will be burned.
Scientists write that Ethereum is already less inflationary than Bitcoin:
"Analyzing the rate of Ethereum formation since EIP-1559, the expected increase in total Ethereum supply is only 0.98%, which is less than half of the 1.99% increase in Bitcoin supply, which is almost certain over the same period," we read.
The researchers concluded that Ether provides "better anti-inflation properties than Bitcoin, and therefore Ethereum may offer better long-term storage of value than Bitcoin."
Technical Market Outlook
The sell-off on the ETH/USD had been terminated at the level of $3,438, so the bears had manage to push the price way below the $4,000 level. After the Pin Bar candlestick was made at the daily time frame chart, the bounce from the lows has hit the level of $4,257 and now the market is consolidating in a narrow range. The next technical resistance is located at $4.435. The immediate technical support is seen at $4,055. Despite the recent complex and time consuming corrective decline in form of ABCxABC pattern, the larger time frame trend remains up.
Weekly Pivot Points:
WR3 - $6,154
WR2 - $5,472
WR1 - $4,817
Weekly Pivot - $4,100
WS1 - $3,475
WS2 - $2,785
WS3 - $2,131
Trading Outlook:
The ABCxABC complex corrective cycle might be terminated, so 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.
