14.10.202109:56 Forex Analysis & Reviews: Technical Analysis of ETH/USD for October 14, 2021

Crypto Industry News:

The creator of Ethereum spoke about comparing Ethereum with Bitcoin. Vitalik Buterin said he was concerned about the possibility that the cryptocurrency sector would fall into a "cultural trap." In his opinion, this could happen if the current thinking paradigm does not fundamentally change.

When it comes to Ethereum, Buterin expressed concern that the network's main concern could be its exclusivity for the rich. High transaction fees, he said.

When asked if Ethereum could overtake Bitcoin in the future, Buterin replied that he did. As for possible flippening in terms of capitalization:

"I think the big difference between Ethereum and Bitcoin is that Bitcoin is a platform where the value of the ecosystem comes from the value of the currency, and in Ethereum the value of the currency comes from the value of the ecosystem."

As you may remember, the problem of high fees in Ethereum was taken up by elements of the update introduced as part of the London hard fork. Pointing to this as another milestone for the network, Buterin said:

"Especially after EIP-1559, since the toll burn mechanism is in operation, it becomes true in a more direct, economic sense."

At the time of writing, Ethereum's market cap is less than 40% of capitalization. Ethereum is significantly ahead of the cryptocurrency king network in terms of the number of transactions and the size of transaction fees.

Technical Market Outlook:

The ETH/USD bulls are back in control of the market after the breakout from a potential triangle pattern in the wave 4. This corrective wave looks completed, so the next target is located at $3,677 and then at $3,830. This might be the last wave in the impulsive cycle, the wave 5. The nearest technical support is seen at the level of $3,606. The momentum is back into the positive zone, but is not that strong yet.

Weekly Pivot Points:

WR3 - $4,097

WR2 - $3,885

WR1 - $3,704

Weekly Pivot - $3,473

WS1 - $3,298

WS2 - $3,083

WS3 - $2,876

Trading Outlook:

Ethereum have started the next wave up and violated the long-term target at the level of $3,550. The next long-term target for ETH is seen at the level of $4,394. 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.