FX.co ★ Technical Analysis of ETH/USD for September 7, 2022

Crypto Industry News:

The Ethereum merger could force many cryptocurrency miners to give up and abandon their expensive mining rigs in the midst of a profit race.

The transition of the Ethereum network from Evidence-of-Work (PoW) consensus is likely to flood the crypto industry with idle Etherum (ETH) miners, causing severe disruption to all PoW tokens.

Andy Long, CEO of White Rock bitcoin mines, said in an interview that the upcoming Ethereum merger will force PoW miners to look for more profitable ways, such as other PoW blockchains, and thereby "flood" other coins - increasing the difficulty of mining and reducing profitability:

"The hash rates will flow to alternative coin PoW GPUs, and many miners will simply give up and try to sell their graphics farms," he said.

However, there are still many cryptocurrencies that will continue their PoW path, including BTC, Litecoin (LTC) and Bitcoin Cash (BCH), as well as Ethereum Classic (ETC), Monero (XMR), Zcash (ZEC) and Ravencoin (RVN) .

Technical Market Outlook:

The ETH/USD pair had managed to rally 17.62% before the rally was capped at the level of $1,685 and the Gravestone Doji candlestick pattern was made on the H4 time frame chart. The market reversed almost all of the recent gains and broke below the technical support located at the level of $1,530. The next target for bears is seen at the level of $1,476 and at the last swing low located at $1,425. The momentum is weak and negative, which supports the short-term bearish outlook for ETH.

Weekly Pivot Points:

WR3 - $1,624

WR2 - $1,598

WR1 - $1,581

Weekly Pivot - $1,572

WS1 - $1,555

WS2 - $1,546

WS3 - $1,520

Trading Outlook:

The Ethereum market has been doing the lower highs and lower low since the swing high was made in the middle of the August at the level of $2,029. If the down move will extend, then the next target for bears is located at the level of $1,358. The key technical support for bulls is seen at $1,281.