Technical Analysis of ETH/USD for November 6, 2020

Crypto Industry Outlook:

According to yesterday's blog post on the Ethereum Foundation, the first version of Ethereum 2.0 is expected to launch on December 1. The start will take place provided that certain criteria are met.

Blockchain modernization, which puts the network on the proof-of-stake consensus mechanism, will allow Ethereum holders to stack their coins. In this way, they will be helping to run the net instead of mining as is the case today.

Ethereum 2.0 will start operating on December 1 at 12:00 UTC if there are 16,384 validations on the network. Each validator will have to stake 32 ETH, currently worth $ 12,700. This amounts to $ 209 million in total.

The Ethereum Foundation also released version 1.0 of the specification for Ethereum 2.0 today. It reveals the Launch Pad where users can volunteer to become an Ethereum 2.0 validator (someone who stacks on the network) and the main Ethereum contract address - where the funds will be deposited.

Technical Market Outlook:

The ETH/USD pair has finally started to rally higher and the last resistance from the level of $430.71 had been violated. The local high was made at the level of $439.44 (at the time of writing the article), but the next target is seen at the level of $447.29 and $450.00. The level of $420.11 will now provide the intraday support and the level of $400 will now act as a key technical support. Only if a daily candle closes below $360 level, then the bears will have full control of the market.

Weekly Pivot Points:

WR3 - $456.03

WR2 - $431.91

WR1 - $415.05

Weekly Pivot - $393.33

WS1 - $376.79

WS2 - $355.02

WS3 - $337.80

Trading Recommendations:

The up trend on the Ethereum continues and the next long term target for ETH/USD is seen at the level of $500, so any correction or local pull-back should be used to open the buy orders. This scenario is valid as long as the level of $309.61 is broken.

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The material has been provided by InstaForex Company - www.instaforex.com
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