Technical Analysis of ETH/USD for May 25, 2021

Crypto Industry News:

The charts from Glassnode may suggest that users now prefer to keep their bitcoins closer together and store them in external wallets, rather than depositing them on exchanges with the intention of selling.

The level of deposits on stock exchanges hit the biggest lows in about 4 months. In addition, the number of BTC network users is growing.

The charts provided by the Glassnode data aggregator indicate that investors are optimistic about bitcoin.

According to Chart 7-MA, cryptocurrency exchanges are currently experiencing huge outflows of digital funds, hitting an annual record in this dimension. The last time such large Bitcoin payouts were noticed was March 2020. They reached their lowest level in four months (7-day MA) and at the time of this publication are 2,645,738.

Technical Market Outlook:

The ETH/USD pair has bounced from the level of $1,836 towards the technical resistance located at $2,639. The price overbalance level is seen at $2,781, so any violation of this level will open the road towards the next technical resistance seen at $2,861. Nevertheless, the bears are still in full control of the market and the next target for beats is seen at the level of $1,729, $1,633 and $1,544 if the overbalance level violation fails. The nearest technical support is seen at the level of $2,201.

Weekly Pivot Points:

WR3 - $4,688

WR2 - $4,131

WR1 - $2,922

Weekly Pivot - $2,341

WS1 - $1,141

WS2 - $579

WS3 - $181

Trading Recommendations:

Ethereum has lost more than 50% of the recent gains from the lows of March 2020 and now is currently in the counter-trend corrective cycle. The next long-term target for bears is seen at the level of $1,728 (61% Fibonacci retracement of the last wave up) and $1,420 ( January 2018 swing high). The up trend is resumed when the level of min. $3,000 is clearly violated.