FX.co ★ Technical Analysis of ETH/USD for September 4, 2023

Crypto Industry News:

In the last 48 hours, MakerDAO's value fell by 2.5%, while Ethereum recorded a slight increase. This was directly caused by the controversy in which ETH co-founder Vitalik Buterin was involved. This one sold over 11,000 MakerDAO (MKR) tokens for 350 ETH, which translates to around half a million dollars.

While he has not issued any official statement on the deal, it comes after the announcement by Rune Christensen, founder of MakerDAO. The latter announced that the final stage of "Endgame" is the introduction of a dedicated blockchain for Maker, codenamed "NewChain". He claims that this will make the ecosystem safer and more efficient. After analysis, he believes that Solana's codebase should be considered as its basis.

For many Ethereum enthusiasts, this announcement came as a surprise. MakerDAO was one of the first projects launched on Ethereum. The market value of its stablecoin, DAI, has increased to $5 billion, while MKR exceeds $1 billion. However, Christensen clarified that "NewChain" is mainly about DAO management, and all user-facing features such as DAI will remain on Ethereum.

Technical Market Outlook:

The ETH/USD pair has made a new local low at the level of $1,629, which is just $8 away from the first key technical support. Since then the ETH has been seen trading in a narrow range, progressing the horizontal trend. The momentum is again weak and negative, so the short-term outlook for ETH remains bearish. The intraday technical resistance is seen at the level of $1,645 and the next technical support levels are located at $1,621, $1,579 and $1,525.

Weekly Pivot Points:

WR3 - $1,640

WR2 - $1,648

WR1 - $1,642

Weekly Pivot - $1,635

WS1 - $1,629

WS2 - $1,623

WS3 - $1,610

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 2022 at the level of $2,029. This is the key level for bulls, so it needs to be broken in order to continue the up trend. The key technical support is seen at $1,368, so as long as the market trades above this level, the outlook remains bullish.