05.08.202107:50 Forex Analysis & Reviews: Technical Analysis of ETH/USD for August 5, 2021

Crypto Industry News:

According to information available on Ethereum.org, the Ethereum update called London is scheduled to go live on Thursday, Aug 5, 21st. "The London update is scheduled to be launched on Ethereum in August 2021, in block 12,965,000. It will introduce the EIP. -1559, which will reform the transaction fee market, along with changes in the way gas refunds are handled [...] ".

EIP-1559 will have a direct impact on how the network handles transaction fees. In the future, each transaction will reduce the base charge, thus reducing the supply of assets in circulation and giving users the option to include a tip to encourage faster confirmations in proportion to network demand. Fork London will also introduce other EIPs such as the EIP-3541.

Technical Market Outlook:

The ETH/USD pair has made a new higher high at the level of $2,770, just before the most recent hard fork called London Upgrade is in use in the Ethereum network. The next target for bulls is seen at the level of $2,861 and $2,914. When the level of $2,914 is violated, then $3,000 is the target. The immediate technical support is seen at the level of $2,695 and $2,639. Strong and positive momentum supports the short-term bullish outlook for ETH.

Weekly Pivot Points:

WR3 - $3,455

WR2 - $3,077

WR1 - $2,935

Weekly Pivot - $2,529

WS1 - $2,363

WS2 - $1,988

WS3 - $1,819

Trading Outlook:

Ethereum might have started the next wave up as the next long-term target for bulls is seen at the level of $3,000. Nevertheless, in order to resume the long-term up trend, bulls have to break through the last swing high seen at the level of $2,880. The level of $1,728 (61% Fibonacci retracement of the last big impulsive wave up) is still the key support for bulls.