FX.co ★ Technical Analysis of ETH/USD for June 10, 2020:

Crypto Industry News:

Ethereum's daily network fees surpassed those in the Bitcoin network for two consecutive days, June 6 and 7, according to data obtained by Glassnode.

According to Glassnode, on June 6, the total fees spent on the Ethereum network were $ 498,000, compared to $ 308,000 for Bitcoin. The gap increased the next day, with total charges of $ 540,000 and $ 258,000, respectively. For the second time this year, Ethereum network fees have beaten Bitcoin. March 12 saw a sudden increase in Ethereum network fees, which amounted to nearly $ 800,000, far exceeding the amount paid by Bitcoin users on the same day. The Ethereum network was experiencing major bottlenecks at the time, which probably prompted users to pay more for their transactions.

Also this time, the reasons behind the event seem similar. First, the Bitcoin pool was recently cleared as a result of a recent difficulty correction that took place on Thursday. The lack of pending transactions significantly reduced transaction fees on the network, which fell to the level of 1 dollar. By comparison, on May 20, an average Bitcoin transaction could cost as much as $ 6.6 due to the state of the net after halving.

Mempool Ethereum is currently clogged, waiting for over 103,000 transactions, which partly explains the latest amounts of network fees. What's more, the value of stablecoin transfer this year breaks new records, suggesting that stablecoins - most of which operate on the Ethereum network - have significantly contributed to network activity. Ethereum developers are trying to address the scalability issue in the upcoming Ethereum 2.0 upgrade scheduled for July.

Technical Market Outlook:

The ETH/USD pair has been seen consolidating under the upper channel line for the most of the week, so the volatility is now decreasing. No important moves were detected, no new signal appeared. The upper boundary of the consolidation zone is located at the level of $246.94 and the lower one at $235.42. The last bounce was quite strong and if bears will not regain the control of the market soon, then the bulls will push the price towards last swing high seen at $253.00. The decreasing momentum supports the short-term bearish outlook for Ethereum and the next target for bears is seen at the level of $217.65 and $215.58.

Weekly Pivot Points:

WR3 - $282.07

WR2 - $267.98

WR1 - $254.66

Weekly Pivot - $238.43

WS1 - $226.18

WS2 - $210.71

WS3 - $197.39

Trading Recommendations:

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 next key technical support is seen at the level of $174.82.