07.12.202111:20 Forex Analysis & Reviews: Technical Analysis of ETH/USD for December 7, 2021

Crypto Industry News:

Ethereum co-founder Vitalik Buterin outlined his vision of a "possible roadmap" for Eth2, outlining a future where the largest smart contract platform can scale up while meeting high standards of distrust and censorship resistance.

In today's post titled "Endgame", Buterin presented a thought experiment on how an average large Blockchain - defined by very high block frequency, large block size, and thousands of transactions per second - can be considered censorship-proof enough and not trust-based. The obvious trade-off for this level of scalability is the centralization of block production. Buterin's solutions, featured in the blog post, do not solve the centralization problem, but still provide an implementation plan.

Regarding the solutions, Buterin suggested a "second layer of low-resource staking" to validate distributed blocks. "Introduce anti-fraud or ZK-SNARKS protection to allow users to check block validity directly (and cheaply)" directly, and "introduce data availability sampling to allow users to check block availability [and] add secondary transaction channels to prevent censorship."

With these updates, "We get a chain where block production is still centralized, but block validation is non-trust-based and highly decentralized, and specialized anti-censorship magic prevents block makers from being censored," explained Buterin.

The co-founder of Ethereum concluded that there is a high probability that block production will remain centralized, regardless of the scalability path that the network is taking.

Technical Market Outlook

The ETH/USD pair has broken through the trend line resistance seen around the level of $4,300 and made a new local high at the level of $4,430 (at the time of writing this analysis). The next technical resistance is located at $4,435 and $4,557. The immediate technical support is seen at $4,257. Despite the recent complex and time consuming corrective decline in form of ABCxABC pattern, the larger time frame trend remains up. The H4 time frame RSI indicator is showing an increase in momentum above the neutral level of fifty, which supports the short-term bullish outlook for ETH.

Weekly Pivot Points:

WR3 - $6,154

WR2 - $5,472

WR1 - $4,817

Weekly Pivot - $4,100

WS1 - $3,475

WS2 - $2,785

WS3 - $2,131

Trading Outlook:

The ABCxABC complex corrective cycle might be terminated, so the next long-term target for ETH is seen at the level of $5,000. Nevertheless, in order to continue the long-term up trend, the price can not close below the technical support at the level of $2,906. 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. The level of $3,677 is the key mid-term technical support for bulls.