FX.co ★ Technical Analysis of ETH/USD for June 21, 2021

Crypto Industry News:

The eagerly anticipated London Ethereum hard fork now has a fixed block height for the three test networks, a key penultimate step towards fully commissioning the main network.

In a blog post on the Ethereum Foundation website, Ethereum lead developer Tim Beiko wrote that the Ropsten, Goerli, and Rinkeby test networks now have fixed block heights where London will be launched, where Ropsten will be first on block 10 499 401 or around 24th of June. Goerli is due on June 30th and Rinkeby on July 7th.

However, the release schedule for all major network upgrades is still being established.

Hard fork London includes five Ethereum Improvement Proposal (EIP) improvements, but the star of the show is EIP-1559. A review of Ethereum's existing fee structure, EIP-1559, is expected to significantly reduce costs for users. It can also cut miners 'income by more than 50%, which has led to some visions of a "miners' revolt" that have largely come to fruition.

The upgrade is considered to be one of the many positive catalysts on the horizon for Ethereum, of which the Ethereum 2.0 upgrade is no less important. Eth2 will transform the network into a more scalable proof-of-stake consensus mechanism, which will significantly reduce the power consumption of validation blocks.

Technical Market Outlook:

The ETH/USD pair has hit the technical support located at the level of $2,098 and bounced towards the level of $2,256, which is a technical resistance for the price. Nevertheless, the bulls were capped at this level and the market reversed towards the level of $2,000 again. So far the lower low was made at the level of $2,014 (at the moment of writing the article). The next obvious target for bears is $2,000 and $1,941.

Weekly Pivot Points:

WR3 - $3,146

WR2 - $2,878

WR1 - $2,557

Weekly Pivot - $2,297

WS1 - $1,962

WS2 - $1,702

WS3 - $1,348

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.