FX.co ★ Technical Analysis of ETH/USD for October 19, 2020

Crypto Industry News:

The Ethereum 2.0 test network, Medalla, turned out to be a complete flop, and the share of users who test it fell to just 1.5%. Due to the low activity of the testers, the risk of a hard fork is quite significant. On Ethereum block 515616, the Medall update threw an error and stopped working. Therefore, a hard fork may be needed to resolve the problem.

Currently, Ethereum users have turned back to the Zinken update. One of the developers working on ETH 2.0 - Preston van Loon, developer of Prysm, stated:

"We were delighted with the successful launch of our dress rehearsals thanks to the short-lived Zinken test network, and now it's time to bring our attention back to Medall."

Although there are no real ETHs at Medalla, there is also no incentive for users to just leave the network. Even if the worst happens, no one will lose their funds. Unfortunately, this situation also creates problems, because many users stay in Medalli just to "see what happens" and that only creates more problems.

Technical Market Outlook:

The ETH/USD pair has bounced from the local low made at the level of $360.97 and managed to retrace 50% of the last wave down. The target for bulls is still seen at the level of $400, but for now the local high was made at $379.16 and the Pin Bar candlestick pattern was made at the end of the move. The nearest technical resistance is seen at the level of $389.90 and at the swing top at $394.95. On the other hand, the target for bears is seen at the level of $360.60 and $355.60 and the nearest technical support is seen at the level of $369.37.

Weekly Pivot Points:

WR3 - $424.52

WR2 - $408.88

WR1 - $391.97

Weekly Pivot - $376.47

WS1 - $357.63

WS2 - $341.22

WS3 - $328.22

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. Moreover, bulls had bounced from the weekly trend line support last week and now are away from it. The key mid-term technical support is currently seen at the level of $305.20 - $321.95, so 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.