FX.co ★ Technical Analysis of ETH/USD for February 11, 2022

Crypto Industry News:

With Bitcoin's price rising sharply since early February, JPMorgan analysts have suggested that BTC's "fair value" is actually lower than its current market price.

The current level of fair value for BTC is around $ 38,000, JPMorgan's strategists said in a recent investor note. Strategists have estimated the "fair value" based on the fact that Bitcoin is almost four times more volatile than gold.

Strategists suggested that Bitcoin's "fair value" would increase to $ 50,000 in a scenario where the volatility level would narrow to three times, adding:

"The biggest challenge for Bitcoin in the future is its volatility and the boom and bust cycles that hinder further institutional adoption."

JPMorgan's strategists, however, are still predicting that BTC will one day rise to well above $ 100,000. According to the report, the long-term theoretical target for Bitcoin is $ 150,000, compared to $ 146,000 projected in January 2021.

Technical Market Outlook

The ETH/USD pair has made a new local high at the level of $3,285 despite the extremely overbought market conditions. The Bearish Engulfing candlestick pattern made at the H4 time frame chart has limited the rally, however the bulls are approaching the level of $3,285.This is where the game changing level (market sentiment changer) is located between $3,385 - $3,438. The bulls are in control of the market on the lower time frames as the momentum is strong and positive on the daily time frame chart and the market is bouncing from the extremely oversold conditions. The nearest technical support is seen at $3,046 and $2,930.

Weekly Pivot Points:

WR3 - $3,873

WR2 - $3,464

WR1 - $3,288

Weekly Pivot - $2,862

WS1 - $2,704

WS2 - $2,297

WS3 - $2,119

Trading Outlook:

The market is bouncing after over the 50% retracement made since the ATH at the level of $4,868 was made. The level of $3,436 is the next key technical resistance for bulls. On the other hand, the next long-term technical support is located at $1,721 (61% Fibonacci retracement of the last big impulsive wave up) is still the key long-term retracement level for bulls.