FX.co ★ Technical Analysis of ETH/USD for September 14, 2020

Crypto Industry News:

Yearn Finance launched yETH vault earlier this week. The protocol attracted over 137,000 ETH on the very first day of its launch. YETH vault pays profits to those who have blocked their resources on the platform. They come from the profits generated by the bonus obtained from ETH blocked on various platforms.

The ETH community has expressed concerns about the unusually large number of blocked ETH resources as the yETH protocol could theoretically control and lead to an unprecedented 51% attack on the Ethereum network.

Vitalik Buterin commented on the whole situation, who replied that the risk associated with a 51% attack against the upcoming update is unjustified. In a tweet, he stated that someone could indeed attempt an attack, but would quickly lose control of the network as a result of the actions of other participants:

"We need to get past the myth that it's * fatal * if one entity gets enough to 51% attack PoS. The reality is they could attack * once *, and then they either get slashed or (if censorship attack) soft-forked away and inactivity-leaked, and they lose their coins so can't attack again ".

Concerns came days after Ethereum Classic experienced its third 51% attack in just one month. The security of this network has been heavily criticized and questioned since then.

Technical Market Outlook:

The ETH/USD pair has been moving up in an ascending channel towards the level of $388 where it was capped due to the upper channel line resistance level. The market had made a Bearish Engulfing candlestick pattern at this level and reversed towards the lower channel line. Currently, the market is consolidating in a narrow zone between the levels of $355.24 - $369.37 and due to the fact, that the last move inside the channel is corrective in nature, more weakness is expected in ETH/USD pair. The next technical support is seen at the level of $332.28 (outside of the channel). The key demand zone is seen between the levels of $305.20 - $321.95 and if violated, then the next key long term support is seen at the level of $288.

Weekly Pivot Points:

WR3 - $460.14

WR2 - $422.13

WR1 - $395.03

Weekly Pivot - $357.60

WS1 - $326.67

WS2 - $291.16

WS3 - $261.17

Trading Recommendations:

The weekly and monthly time frame trend on the ETH/USD pair remains up and there are no signs of trend reversal, so buy orders are preferred in the mid-term. The key mid-term technical support, seen at the level of $364.95 had been violated, but all the dynamic corrections are still being used to buy the dips. The next mid-term target for bulls is seen at the level of $500.