FX.co ★ Technical Analysis of ETH/USD for January 8, 2021

Crypto Industry News:

TaxBit, a company that provides software for automating cryptocurrency taxes, says it has secured investments from the venture arms of the PayPal and Coinbase affiliates, as well as from its current investor Winklevoss Capital. The amount of the investment was not disclosed in the announcement.

TaxBit automates the complex cryptocurrency tax compliance task for consumers, businesses and exchanges through two main applications.

PayPal's investment can be significant because experts have already said that new customers of a payment company who are just starting to use cryptocurrencies will face a huge problem when it's time to settle taxes, and this is what the TaxBit application is supposed to help.

Technical Market Outlook:

The ETH/USD pair has made a new swing high at the level of $1,288, but reverses quickly under the short-term trend line support. The local low was made at the level of $1,062 and currently the market is bouncing back on again.The up trend is being continued and there is no sign of trend reversal. Moreover, the up trend is now going parabolic and the next mid-term target for bulls is seen at the level of $1,420, the all time high from 2017. The nearest technical support is seen at the level of $1,100 and $1,090.

Weekly Pivot Points:

WR3 - $1,394

WR2 - $1,185

WR1 - $1,086

Weekly Pivot - $847

WS1 - $791

WS2 - $545

WS3 - $496

Trading Recommendations:

The up trend on the Ethereum continues and the next long term target for ETH/USD is seen at the level of $1,420, so any correction or local pull-back should be used to open the buy orders. Please notice, the up trend starting to go vertical, so the volatility will be higher than average. The bullish scenario is valid as long as the level of $830 is broken.