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FX.co ★ Technical Analysis of ETH/USD for May 10, 2021

Technical Analysis of ETH/USD for May 10, 2021

Crypto Industry News:

Ethereum, the largest altcoin, surpassed the $ 4,000 mark for the first time in history. ETH's market capitalization rose to $ 467 million. This means the cryptocurrency is on track to surpass JPMorgan Chase in value. The largest bank in the US is - after Friday's closure - now worth $ 488 billion.

Part of the reasons behind the rise in the price of ethereum may be related to the rise in institutional interest. The Coinshares report found that institutions had bought more than $ 30 million in ETH in late April. The funds are now believed to hold $ 13.9 billion in ETH or its tools.

Significant progress has also been made in terms of adoptions. Last week, the European Investment Bank announced it would be issuing $ 120 million in ETH bonds in partnership with major banking entities such as Goldman Sachs. In addition, the development of decentralized finance - one of Ethereum's key sectors and use cases - continues at an bullish pace.

However, the most bullish catalysts on the horizon are two major network infrastructure upgrades: EIP-1559 and ETH 2.0. The EIP-1559, which is now to be included in the London hard fork, will review the ETH fee structure and is expected to significantly reduce gas costs while making ETH a more deflationary asset.

Technical Market Outlook:

The ETH/USD pair has made a new all time high at the level of $4,137 (at the time of writing this article) and keeps going up. The next target for bulls is seen at the level of $4,500. The zone between the levels of $4,000 - $3, 980 will now act as a short-term demand zone. The key short-term support is seen at the level of $3,596. The momentum is strong and positive, so it supports the bullish outlook for ETH.

Weekly Pivot Points:

WR3 - $4,545

WR2 - $4,714

WR1 - $4,394

Weekly Pivot - $3,656

WS1 - $3,369

WS2 - $2,577

WS3 - $2,290

Trading Recommendations:

The longer term up trend on the Ethereum continues despite the local counter-trend corrections. The next long term target for ETH/USD is seen at the level of $5,000. The key long term technical support is seen at the level of $3,881, so only a weekly candle close below this level will invalidate the bullish scenario.

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Technical Analysis of ETH/USD for May 10, 2021

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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