FX.co ★ Technical Analysis of ETH/USD for February 23, 2021

Crypto Industry News:

The recent correction in the cryptocurrency market has been the largest we've seen in a while. While most digital assets have experienced severe drops, the price of ethereum on the Kraken exchange has experienced a real rollercoaster.

The exchange's trading platform today recorded an event that has certainly made many hearts beat faster. Ethereum, the second largest cryptocurrency, has experienced a flash crash.

In one hour's candle, ETH dropped to $ 700 - a massive 63% drop from the stock market's daily high. The volume of this hourly candle was also significant. A total of 75,500 ETH worth around $ 131.5 million passed from the opening to the closing by traders.

As always in the case of flash crashes, the price rose again after the decline and remained at a level adequate to other averages on other exchanges.

Technical Market Outlook:

The ETH/USD pair has started a sell off recently and the price has fallen to the level of $1,540 (at the time of writing the article). The sell off was dynamic and sudden, so all of the levels will now act as a technical resistance for the market. The next target for bears is seen at the level of $1,478 and $1,438. The nearest technical resistance is located at the level of $1,648. The weekly and monthly time frame trend is still up. The bullish scenario is valid as long as the level of $1,412 is broken.

Weekly Pivot Points:

WR3 - $2,476

WR2 - $2,254

WR1 - $2,101

Weekly Pivot - $1,876

WS1 - $1,724

WS2 - $1,492

WS3 - $1,337

Trading Recommendations:

The up trend on the Ethereum continues and the next long term target for ETH/USD is seen at the level of $2,100, 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 $1,412 is broken.