FX.co ★ Technical Analysis of ETH/USD for May 26, 2021

Crypto Industry News:

In a recent television interview, Todd Morley - a former board member of global investment firm Guggenheim Partners - compared the use of the networks behind two of the world's leading digital assets. He spoke briefly about Bitcoin, calling it a "thing".

On the other hand, he praised the functionality and structure of Ethereum. According to him, the blockchain behind the second largest cryptocurrency "has much higher usability thanks to smrat contracts." Morley added that the number of developers building applications for Ethereum is rapidly growing. According to the co-founder of Guggenheim, the number of developers working on Ether has grown 20-fold for six years in a row.

Moreover, the CEO of Overline emphasized the importance of digitization for any industry today. He warned that every sector would experience serious difficulties, and would even "go out of business" if it did not implement blockchain technology into its system. Morley cited the insurance industry as an example.

At the end of the interview, the co-founder of Guggenheim told about the world's largest NFT museum that he is building. He argues that Guggenheim Partners is very interested in modern infrastructure. The company aims to introduce investors to the cryptocurrency community and become a "global digital ambassador."

Technical Market Outlook:

The ETH/USD pair has violated the price overbalance level is seen at $2,781, so the road towards the next technical resistance seen at $2,861 is now open. Nevertheless, the bears are still in full control of the market and the next target for beats is seen at the level of $1,729, $1,633 and $1,544 if the overbalance level violation fails. The nearest technical support is seen at the level of $2,201.

Weekly Pivot Points:

WR3 - $4,688

WR2 - $4,131

WR1 - $2,922

Weekly Pivot - $2,341

WS1 - $1,141

WS2 - $579

WS3 - $181

Trading Recommendations:

Ethereum has lost more than 50% of the recent gains from the lows of March 2020 and now is currently in the counter-trend corrective cycle. The next long-term target for bears is seen at the level of $1,728 (61% Fibonacci retracement of the last wave up) and $1,420 ( January 2018 swing high). The up trend is resumed when the level of min. $3,000 is clearly violated.