09.06.202109:23 Forex Analysis & Reviews: Technical Analysis of ETH/USD for June 9, 2021

Crypto Industry News:

Solana, an FTX-backed proof-of-stake coin, aims to raise $ 450 million in a funding round, according to the Decrypt report. The facility, citing anonymous sources, says the currency channeled far less money in a smaller round of funding, but found large capital that could potentially bolster the project.

Although there is still no confirmation of how much money Solana has raised, the funds will be used to encourage developers to build and introduce existing projects to the network. It is part of a group of cryptocurrencies called "Ethereum Killers" that seek to mimic the features of this project while improving bandwidth and fees.

Solana claims to be technically superior to Ethereum, offering processing of up to 50,000 transactions per second. The project gained popularity due to very low transaction fees and the use of the token platform by the FTX exchange, which allows deposits and withdrawals from this network.

Last year, FTX CEO Sam Bankman-Fried decided to build a decentralized Serum exchange on top of the Solana blockchain rather than Ethereum.

Solana is one of the most promising networks dedicated to replacing Ethereum. Avalanche, another project launched last year, also climbed to the top of the "Ethereum Killers" claiming to be better, enabling users to create higher-bandwidth subnets.

Cardano, the platform founded by Ethereum's "father" Charles Hoskinson, is putting its platform into practice. Thanks to this, it aroused considerable interest in the cryptocurrency community.

All of these chains are racing to achieve some kind of stable support before Ethereum can fix the scaling issues. Fortunately for them, Ethereum founder Vitalik Buterin announced that scaling through sharding is unlikely to be implemented by the end of 2022.

Technical Market Outlook:

The ETH/USD has made a new local low at the level of $2,308. The immediate technical resistance is seen at the level of $2,549. As long as the price is still under the level of $2,914, the bears are still in full control of the market and the next target for bears is seen at the level of $1,729, $1,633 and $1,544. The nearest technical support is still seen at the level of $2,201.

Weekly Pivot Points:

WR3 - $3,628

WR2 - $3,236

WR1 - $2,995

Weekly Pivot - $2,426

WS1 - $2,383

WS2 - $2,000

WS3 - $1,765

Trading Recommendations:

Ethereum has lost more than 50% of the recent gains from the lows of March 2020 and now is currently in the counter-trend corrective cycle. The next long-term target for bears is seen at the level of $1,728 (61% Fibonacci retracement of the last wave up) and $1,420 ( January 2018 swing high). The up trend is resumed when the level of min. $3,000 is clearly violated.