FX.co ★ Technical Analysis of ETH/USD for May 4, 2021

Crypto Industry News:

Ethereum co-founder Vitalik Buterin currently has over $ 1 billion worth of digital coins at his main ETH address (which he revealed in October 2018). The 27-year-old developer also owns several other tokens. Buterin has several other addresses, although he has stated that their balances are "fairly small."

Either way, the balance of his primary address makes Buterin already the second youngest billionaire to have made his fortune on his own. In the first position is Austin Russell, CEO of Luminar Technologies,

Russell replaced beauty tycoon Kylie Jenner on top of that podium after she was removed from Forbes' list last year for the sake of her family's fortune.

ETH has gained 316 percent so far this year, significantly surpassing bitcoin. Despite the spectacular ETH rally so far, Fundstrat believes that ETH still has room for further upward moves and continues to maintain their forecast that the price of ether could reach USD 10,500.

JPMorgan pointed out that there is an inherent difference between bitcoin and ethereum, where BTC is store-of-value, and ETH is the technology and backbone of the entire crypto-native economy, playing a much wider role than just a medium of value exchange.

Technical Market Outlook:

The ETH/USD pair has made a new all time high at the level of $3,442 (at the time of writing the article). The rally from the level of $2,955 has ended with a Pin Bar candlestick, which might indicate a potential pull-back. The immediate technical support is located at the level of $3,184, but if this level is violated, then the next technical support is seen at $2,955. The momentum is strong and positive, but the market conditions are now extremely overbought, so a correction is welcome.

Weekly Pivot Points:

WR3 - $4,152

WR2 - $3,563

WR1 - $3,343

Weekly Pivot - $2,736

WS1 - $2,538

WS2 - $1,587

WS3 - $1,750

Trading Recommendations:

The longer term up trend on the Ethereum continues despite the local counter-trend corrections. When the correction is terminated, the next long term target for ETH/USD is seen at the level of $4,000. The key long term technical support is seen at the level of $2,550, so only a weekly candle close below this level will invalidate the bullish scenario.