18.08.202210:55 Forex Analysis & Reviews: Technical Analysis of ETH/USD for August 18, 2022

Crypto Industry News:

The Ethereum Foundation wants the public and ETH investors to be aware that The Merge is a transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS), not a reduction in gas charges:

"The gas charges are the product of the network's demand [for services] in relation to its capacity," the organization said.

The foundation explains that it is about changing the algorithm to PoS, which, however, "does not significantly change any parameters that directly affect the network capacity."

While the transaction fees on the Ethereum network will not change after The Merge, users who want a lower fee for transfers will be able to take advantage of Tier 2 scaling solutions or wait for further updates in the Ethereum chain. After The Merge, the Ethereum Foundation will roll out The Surge, The Verge, The Purge and finally The Splurge. And it is the latter that aims to improve scaling with sharding technology.

Technical Market Outlook:

The ETH/USD pair has fell out of the channel around the level of $1,880 and is testing the technical support located at $1,819. The momentum had violated the level of fifty already and it points to the south indicating a strong bearish activity. The nearest technical resistance is seen at $1,915 and must be clearly violated in order to continue the up move. The key short-term technical support is located lower, between the levels of $1,785 - $1,756.

Weekly Pivot Points:

WR3 - $2,132

WR2 - $2,042

WR1 - $1,986

Weekly Pivot - $1,953

WS1 - $1,897

WS2 - $1,864

WS3 - $1,775

Trading Outlook:

The down trend on the Ethereum might have been terminated at the level of $880. So far every bounce and attempt to rally is being used to sell Ethereum for a better price by the market participants, so the bearish pressure is still high. The next key psychological level for bulls is located at $2,000 and needs to be clearly violated before any extension higher.