Technical Analysis of ETH/USD for August 3, 2021

Crypto Industry News:

Global payment provider PayPal is currently recruiting for several cryptocurrency positions at its offices in Ireland, further underlining the company's ambitions in the rapidly growing digital asset market.

Dublin-based Irish Independent, one of the country's most popular news outlets, announced on Sunday that PayPal is looking to fill a variety of cryptocurrency-related positions for compliance, anti-money laundering and business development at its Dublin and Dundalk offices.

PayPal launched a dedicated Cryptocurrency and Blockchain business unit earlier this year to support its cryptocurrency adventure, which initially started in October 2020 by allowing US customers to buy Bitcoin, Ethereum, Bitcoin Cash, and Litecoin. In March this year, the company expanded its offering by allowing US customers to pay for goods and services using their digital assets. Two months later, PayPal said it would allow customers to withdraw their cryptocurrencies to third party wallets.

Dan Schulman, PayPal's CEO, said in April that his company's crypto operations exceeded all expectations in the first six months of operation. The rapid rise in the popularity of digital assets such as Bitcoin and Ethereum coincided with a massive surge in prices that pushed the entire cryptocurrency market to nearly $ 2.6 trillion. Although prices have adjusted sharply between May and July, the cryptocurrency markets seem to have rebounded and are now moving up again.

During PayPal's quarterly profit statement last week, Schulman indicated that the company's cryptocurrency trading service will be arriving in the UK in the very near future. He also indicated that updates are being developed that would allow for faster payment processing.

Technical Market Outlook:

The ETH/USD pair rally above the $2,500 had been terminated at the level of $2,695 so far after the Bearish Engulfing candlestick pattern was made. The market dropped towards the lower channel line around the level of $2,453 and this level is a technical support for bulls as well. There is a clear negative divergence between the price and momentum oscillator at the H4 time frame chart, so the pull-back might deepen towards the next technical support seen at the level of $2,405. Please keep an eye on the market reaction around the key technical resistance located at the level of $2,850, because one violated will act as the technical support zone on the bulls way towards the next target seen at $3,000.

Weekly Pivot Points:

WR3 - $3,455

WR2 - $3,077

WR1 - $2,935

Weekly Pivot - $2,529

WS1 - $2,363

WS2 - $1,988

WS3 - $1,819

Trading Outlook:

Ethereum might have started the next wave up as the next long-term target for bulls is seen at the level of $3,000. Nevertheless, in order to resume the long-term up trend, bulls have to break through the last swing high seen at the level of $2,880. The level of $1,728 (61% Fibonacci retracement of the last big impulsive wave up) is still the key support for bulls.


The material has been provided by InstaForex Company -

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