ETH/USD Technical Analysis: Resilience Above Key Levels
Key Takeaways:
- Wikipedia Founder's Crypto Critique: Jimmy Wales compares Bitcoin unfavorably to traditional banking, stirring debate in the crypto community.
- ETH/USD Technical Rebound: After a 10% drop, Ethereum finds support and aims for a bullish resumption towards $2,445.
- Market Sentiment: Current sentiment heavily favors bulls at 73%, reflecting a strong bullish trend in Ethereum trading.
Crypto Industry Insights
Jimmy Wales, founder of Wikipedia, sparked a debate in the cryptocurrency world with his remarks comparing Bitcoin to traditional banking systems. His sarcastic comment, "I forgot my bank password and lost all my net worth. No, actually it didn't happen because banks work and Bitcoin doesn't," has drawn reactions across the crypto community.
Reactions from various cryptocurrency advocates were swift and critical. John E. Deaton, a pro-crypto lawyer, shared an experience of a bank obstructing a large withdrawal, while Billy Markus, co-creator of Dogecoin, pointed out Wales' frequent requests for financial support for Wikipedia. Erik Voorhees, founder of ShapeShift, and cryptocurrency YouTuber "Wendy O" also joined in the criticism, highlighting issues with traditional banks.
Despite his skepticism, Wales is known to have a Coinbase account. The Wikipedia Foundation, however, has distanced itself from cryptocurrencies, stopping Bitcoin and Ethereum donations due to environmental concerns.
Technical Market Analysis
The ETH/USD pair experienced a significant drop, plunging over 10% to a low of $2,141. A rebound occurred from the key short-term support level, with the price climbing to an intraday resistance at $2,238.
The market is showing signs of a possible uptrend resumption. Bulls are targeting the $2,445 level. However, a sustained breakout below the $2,234 support could shift the outlook to bearish. The crucial support remains at $2,134.
Weekly Pivot Points
These are critical for identifying potential market movements:
- WR3: $2,666
- WR2: $2,456
- WR1: $2,350
- Weekly Pivot: $2,245
- WS1: $2,140
- WS2: $2,036
- WS3: $1,826
Trading Prospects
Ethereum has shown an upward trend since hitting a low at $1,520. The long-term outlook remains bullish as long as the market stays above the critical support level of $1,368. Mid-term support is found at $1,913.
Indicator Insights
- Buy Signals: 9 out of 21 technical indicators
- Neutral Signals: 9 indicators
- Sell Signals: 5 indicators
- Buy Signals: 3 out of 18 moving averages
- Sell Signals: 15 moving averages
Sentiment Overview
The market sentiment is predominantly bullish with 73% bulls. This trend is consistent with last week's 78% bullish sentiment and a slightly more balanced view in the past three days (66% bulls vs. 34% bears).
Useful Links
Important Reminder
The begginers in forex trading need to be very careful when making decisions about entering the market. Before the release of important reports, it is best to stay out of the market to avoid being caught in sharp market fluctuations due to increased volatility. If you decide to trade during the news release, then always place stop orders to minimize losses.
Without placing stop orders, you can very quickly lose your entire deposit, especially if you do not use money management and trade large volumes. For successful trading, you need to have a clear trading plan and stay focues and disciplined. Spontaneous trading decision based on the current market situation is an inherently losing strategy for a scalper or daytrader.
