FX.co ★ Technical Analysis of ETH/USD for September 21, 2020

Crypto Industry News:

Daily transactions on the Ethereum blockchain have just hit a new all-time record. On September 17, the number of daily transactions on the Ethereum network was 1,406,000, according to data from Ethereum's main browser, Etherscan. This is the highest number of daily transactions ever recorded on the Ethereum network.

According to Etherscan, the previous all-time record was on January 4, 2018, reaching around 1,350,000 transactions during the day.

A new historic peak in Ethereum's daily transactions comes amid the ongoing boom in decentralized finance. The DeFi industry grew at a rapid pace in 2020, with the total value locked in the market reaching $ 9 billion in August 2020. Amid the apparent hype of DeFi, many of the world's major exchanges such as Binance and OKEx were in a rush to replace DeFi tokens.

As most DeFi applications to date are built on the Ethereum network, the exponential growth in the DeFi industry has created significant levels of congestion as well as scalability issues. As a result, Ethereum's network commissions or gas fees soared, resulting in Ethereum miners earning a record $ 500,000 in fees in one hour on September 1. After Uniswap launched the UNI token, Ethereum's transaction fees rose to nearly $ 1 million per hour today.

Technical Market Outlook:

The ETH/USD pair has fallen out of the ascending channel and made a fresh new low at the level of $371.34. The level of $375.52 will now act as a technical resistance for the price and the level of $362.60 will be a technical support. The momentum has decreased as well and now is negative and weak according to the RSI indicator. This kind of price action might be the beginning of a deeper pull-back, but the weekly trend remains up.

Weekly Pivot Points:

WR3 - $426.36

WR2 - $409.08

WR1 - $387.32

Weekly Pivot - $370.45

WS1 - $348.67

WS2 - $331.18

WS3 - $309.49

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.