Technical Analysis of ETH/USD for August 23, 2021

Crypto Industry News:

Jake Klein, CEO of Australia's Evolution Mining, said volatility in cryptocurrency prices would make gold a much more attractive proposition.

In a TV interview, Klein argued that Bitcoin is still far from offering the long-term security associated with gold, despite Bitcoin's returns over the past decade outperforming gold by several orders of magnitude.

According to Klein, cryptocurrencies are still a speculative game and the associated volatility will drive investors back to gold.

The volatile nature of cryptocurrency prices is a frequently cited criticism of cryptocurrency as an asset class. In June, Francesca Fornasari of Insight Investment, a subsidiary of BNY Mellon, argued that, among other things, Bitcoin's volatility could make BTC unsuitable for institutional investors.

Data from Woobull charts puts Bitcoin's 60-day volatility at 11.69%. In June, unstable BTC price action resulted in an increase in the annual 30-day volatility to an annual high above 117%.

The price of gold has also been volatile since the start of the year, with fluctuations of up to $ 200 between June and August.

Despite Klein's announcement that gold was still better than Bitcoin, the director stated that the two assets could coexist, while disagreeing that BTC would eventually knock the precious metal off its established footing.

Technical Market Outlook:

The ETH/USD pair has made a new swing high at the level of $3,356 (at the time of writing the article). The next target for bulls is seen at the level of $3,489 and $3, 553. The immediate technical support is located at the level of $3,274. The strong and positive momentum supports the short-term bullish outlook despite the overbought market conditions on the H4 time frame chart.

Weekly Pivot Points:

WR3 - $3,720

WR2 - $3,519

WR1 - $3,345

Weekly Pivot - $3,142

WS1 - $2,951

WS2 - $2,757

WS3 - $2,565

Trading Outlook:

Ethereum have started the next wave up and violated the long-term target at the level of $3,550. The next long-term target for ETH is seen at the level of $4,394. Nevertheless, in order to continue the long-term up trend, the price can not break below the technical support at the level of $2,695. The level of $1,728 (61% Fibonacci retracement of the last big impulsive wave up) is still the key long-term technical support for bulls.

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

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