FX.co ★ Technical Analysis of ETH/USD for February 24, 2021

Ethereum bounces towards the key short-term technical resistanceCrypto Industry News:

Lark Davis, aka "The Crypto Lark," warned that Ethereum's competitors will continue to shed users due to steadily rising gas charges if Eth2 is not launched soon.

Despite forecasting five-digit Ether prices in 2021, Davis says Ethereum's soaring charges mean that only "rich investors" can afford to use the network, prompting smaller users to switch to competitors such as Binance Smart Chain (BSC ).

Davis noted that BSC is now enjoying a surge in popularity, with BSC-based DApps volumes catching up with their Ethereum rivals.

Describing current gas prices as "completely locomotive", Davis called on Ethereum developers to accelerate the launch of Eth2 in response to the surge to prevent further user churn to cheaper alternatives:

"But now we've come to the point where ETH 1.0 - oh we need ETH 2.0 so soon, come on Vitalik, get started man - ETH 1.0, most regular users don't use the Ethereum app. $ 50 and that's just crazy. "

Phase 0 of Eth2 was launched in December 2020, allowing Ethereum users to lock down Ether from betting. Robust scaling capabilities are expected to be activated with the launch of Eth2 Stage 1, which is expected to fragment at the earliest in late 2021.

According to Bitinfocharts.com, average Ethereum trading prices have risen to an all-time high of around $ 30. At the time of the cryptocurrency market crash on Monday, February 22, the average gas charge was as high as $ 50.

Technical Market Outlook:

The ETH/USD pair has bounced from the lows around the level of $1,380 and retrace over 39% of that last wave down already. The nearest technical resistance is located at the level of $1,648 and this is the main hurdle for the bulls. If violated, then the next targets for bulls are $1,700 and 1,779. Please notice the momentum is still weak and negative, so that might not be the end of the correction. 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.