FX.co ★ Technical Analysis of ETH/USD for May 5, 2021

Crypto Industry News:

As the price of Ethereum soared to a successful $ 3,450, short position traders felt the repercussions of the record liquidation rate.

On-chain data reveals a new record for short cuts across all derivative exchanges worth more than $ 375 million in the last day alone.

The price of the second largest cryptocurrency has recently hit the headlines of industry websites, reaching another ATH. The price of the digital asset has increased by around 350% since the beginning of the year.

At the very beginning of May, ETH was $ 2,750 but surpassed $ 3,000 for the first time in the next 48 hours. The bulls did not stop trying to push the price higher and higher, which led to a continuation of increases towards the level of over USD 3,500.

It highlights the dimension of liquidation brought about by the recent rise in the price of ETH. The company said the number of short cuts across all derivative exchanges reached an all-time high. According to Bybt, liquidations in the last 24 hours totaled more than $ 520 million, the vast majority of which were short positions.

Technical Market Outlook:

The ETH/USD pair has made a new all time high at the level of $3,521, but the rally from the level of $2,955 has ended with a Pin Bar and Bearish Engulfing candlestick patterns, 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.