FX.co ★ Technical Analysis of ETH/USD for November 15, 2021

Crypto Industry Outlook:

The activity of Ethereum addresses is increasing. Last month, there was an increase of almost 50%.

The increased network activity was undoubtedly due to the recent increases in the second most popular cryptocurrency, which recorded a new ATH ($ 4,878) on November 10.

The increased activity in the Ethereum network can be related to the fact that there are many people who say that ETH will soon exceed $ 5,000, and in a few years it may even overtake Bitcoin. According to some forecasts, ETH has a real chance of reaching even USD 10,000 in the near future.

In addition, since the EIP-1559 update was introduced, some of the ETH is burned regularly, which means that less and less cryptocurrency remains in circulation. This, however, will most likely have a positive impact on its price in the long run.

Although the said update only came into force at the beginning of August, a total of 884,297 ETH has been burned so far. At the current exchange rate (USD 4 597), this gives as much as USD 4,065,113,309. Almost two million dollars worth of ETH has been burned down in the last hour alone.

It should also not be forgotten that Ethereum plays a key role in decentralized finance (DeFi). Most of the most popular NFT projects have also been launched on the web. These two practical uses of cryptocurrency contributed to the fact that the market was influenced by new capital that increased the market capitalization of Ethereum.

The current market capitalization of ETH according to $ 543,298,839,472 is "only" 2.24 times smaller than the BTC market cap.

Technical Market Outlook

The ETH/USD pair continue the impulsive wave to the upside, but has been seen consolidating all weekend long around the level of $4,670. Bulls had hit the 127% Fibonacci projection located at the level of $4,873 and reversed lower to consolidate. The next big target for ETH is seen at $5,000. The momentum is strong and positive, which supports the short-term bullish outlook for ETH. The nearest technical support is seen at the level of $4,670 and $4,767.

Weekly Pivot Points:

WR3 - $5,138

WR2 - $5,019

WR1 - $4,756

Weekly Pivot - $4,615

WS1 - $4,352

WS2 - $4,211

WS3 - $3,960

Trading Outlook:

The next long-term target for ETH is seen at the level of $5,000. Nevertheless, in order to continue the long-term up trend, the price can not close below the technical support at the level of $2,906. The level of $1,728 (61% Fibonacci retracement of the last big impulsive wave up) is still the key long-term technical support for bulls. The level of $3,677 is the key mid-term technical support for bulls.