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

Crypto Industry News:

Ethereum creator Vitalik Buterin has unveiled a new version of his project's development plan. Other milestones on the Ethereum Roadmap include: The Surge, The Scourge, The Verge, The Purge, and The Splurge. It aims to improve resistance to censorship and network decentralization. Ethereum's new plans were revealed in a Twitter post on November 5.

After Ethereum's transition to the proof-of-stake (PoS) algorithm on September 15, Ethereum entered the second stage - The Surge, with the goal of producing 100,000 transactions per second.

The updated technical roadmap now introduces The Scourge as a new third stage, followed by the previously known phases: The Verge, The Purge, and The Splurge.

According to the Ethereum roadmap, The Scourge's goal is to "provide a reliable and credibly neutral transaction enablement system and avoid centralization and other threats associated with the MEV [Miner Extractable Value] protocols."

Buterin previously described a credibly neutral mechanism as one that "does not discriminate against any specific individual." He also confirmed the update "The Verge" which will now include the integration of Succinct Non-Interactive Argument of Knowledge (SNARK) technology with Ethereum. The addition of SNARK will add much-needed privacy features to the Ethereum network while allowing anonymous transactions to be tracked.

Technical Market Outlook:

The ETH/USD pair has made a new local high at the level of $1,665, made a PinBar candlestick and immediatley reversed towards the technical support seen at $1,594 (now it will act as a technical resistance). The bearish pressure is still high and the next target for bears is seen at the level of $1,502. The momentum is weak and negative already on the H4 time frame chart, so the down move might continue lower. In order to extend the recent impressive rally and reverse the trend to the up trend the market must break above the last swing high seen at $1,785.

Weekly Pivot Points:

WR3 - $1,635

WR2 - $1,605

WR1 - $1,587

Weekly Pivot - $1,575

WS1 - $1,557

WS2 - $1,544

WS3 - $1,514

Trading Outlook:

The Ethereum market has been seen making lower highs and lower low since the swing high was made in the middle of the August at the level of $2,029. The key technical support for bulls is seen at $1,281 as a part of the demand zone located between the levels of $1,252 - $1,295. If the down move will be extended, then the next target for bears is located at the level of $1,000.