Technical Analysis of ETH/USD for March 2, 2021
Crypto Industry News:
Compared to a pattern that is almost identical to what happened when bitcoin futures were first launched, CME’s inaugural month of ethereum has turned out to be overwhelmingly bearish.
Futures contracts allow institutional investors to hedge against future asset price movements with the option of shorting them. As with bitcoin, the Chicago Mercantile Exchange launched its products as Ethereum was on its way to a record high. The price of ethereum pulled back heavily, and those who shorted on CME were right.
CME launched its Ether futures contracts on February 8. At that time, the value of the asset was around $ 1,600. On February 21, the price of ethereum hit an all-time high of $ 2,050. However, it has since recovered 30% to today’s prices of around $ 1,450 – 10% lower than when the futures contracts were launched.
Since the launch of CME futures, ETH underperformed BTC. However, a similar situation occurred with BTC, which underperformed ETH after the launch of CME futures.
Technical Market Outlook:
The ETH/USD pair has failed to break through the trend line resistance located at the level of $1,600 and reversed back towards the level of $1,535, which is the intraday technical support for bulls. The next target for bulls is seen at the level of $1,478, but even if this level is hit, then the next most important target for bulls is the overbalance level located at $1,619. As long as the market trades below the overbalance level, the correction might develop. Please keep an eye on the RSI indicator as it clearly shows the momentum is barely positive.
Weekly Pivot Points:
WR3 – $2,368
WR2 – $2,149
WR1 – $1,728
Weekly Pivot – $1,511
WS1 – $1,076
WS2 – $857
WS3 – $438
During the recent corrective cycle Ethereum has lost almost 50% of its value , but the longer term up trend on the Ethereum continues. When the correction is terminated, the next long term target for ETH/USD is seen at the level of $2,100. The key long term technical support is seen at the level of $1,412, so only a weekly candle close below this level will invalidate the bullish scenario.
The material has been provided by InstaForex Company – www.instaforex.com