FX.co ★ Technical Analysis of ETH/USD for January 3, 2022

Crypto Industry News:

Wrapping up the last decade, Ethereum co-founder Vitalik Buterin has re-examined his predictions over the years.

Buterin started a thread on Twitter referring to his July 23, 2013 article in which he highlighted Bitcoin's key benefits - internationality and censorship resistance. Buterin predicted Bitcoin's potential to protect the purchasing power of citizens in Iran, Argentina, China, and Africa.

He also noticed an increase in stablecoin adoptions while seeing Argentine companies operating in Tether (USDT). He supported his decade-long ideas about the negative effects of Bitcoin regulation.

The trader continued to believe that "internet money shouldn't cost more than 5 cents per transaction," and highlighted Ethereum's continued efforts to improve the scalability of the Blockchain chain.

On the other hand, Buterin backed off his support for Bitcoin Cash, stating that communities formed around rebellion, even when acting for a good cause, often struggled in the long run, adding that they "value courage over competence and are united around resistance and not a coherent way forward. "

Summarizing the results, Buterin supported the intuition that helped him correct mistakes early on, stating:

"In terms of technology, I was more right about abstract ideas than about production software development. I had to learn to understand the latter over time," he said.

Technical Market Outlook:

The ETH/USD pair has made a new local high at the level of $3,852 after the key short-term demand zone had been broken. Ethereum is currently trading above the technical resistance located a $3,813 and the next target for bulls is seen at the level of $3,825 and $3,900. On the other hand, the next target for bears is seen at the level of $3,438 and this is the key long-term technical support for bulls, so please keep an eye on price behavior around this level.

Weekly Pivot Points:

WR3 - $4,616

WR2 - $4,372

WR1 - $4,083

Weekly Pivot - $3,832

WS1 - $3,531

WS2 - $3,288

WS3 - $2,987

Trading Outlook:

The WXYXZ complex corrective cycle might soon be terminated, so 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.