FX.co ★ Technical Analysis of ETH/USD for June 17, 2021

Crypto Industry News:

Gas charges (transaction costs) on the Ethereum blockchain have dropped significantly over the past month.

According to Data Dashboard from The Block, the average Ethereum network transaction fee is currently around $ 4.5. This represents a whopping 90% drop from $ 45 a month ago.

Average transaction fees are now at their six-month low. The data is based on a 7-day moving average (7MDA), which is an average over the past seven days and indicates a short-term trend.

First, there has been a significant drop in online transactions in recent weeks. Both decentralized finance (DeFi) and non-convertible token (NFT) transactions have declined with the recent market crash.

Another factor driving lower gas charges is the increasing use of Polygon's Layer 2 (formerly Matic Network) scaling solution. The number of transactions in the Polygon network has increased quite significantly in recent weeks.

Technical Market Outlook:

The ETH/USD pair has been rejected from the level of $2,639, which is located just above the 61% Fibonacci retracement. The market pulled-back towards the lower channel line and fell out of the channel. The new local low was made at the level of $2,349 and the bounce from this level is still shallow. The nearest technical resistance is seen at the level of $2,453 and the next target for bears is seen at the level of $2,249 (June 12 low).

Weekly Pivot Points:

WR3 - $3,393

WR2 - $3,098

WR1 - $2,806

Weekly Pivot - $2,528

WS1 - $2,226

WS2 - $1,922

WS3 - $1,648

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.