01.07.202208:50 Forex Analysis & Reviews: Technical Analysis of ETH/USD for July 1, 2022

Crypto Industry News:

Ethereum will switch to the more energy-efficient proof-of-stake protocol from the energy-intensive proof-of-work protocol that Bitcoin also uses. Energy consumption will drop by 99.5% and the issuance of new ETH tokens will be cut by around 90%, with many analysts predicting the price of Ethereum to rise.

Thanks to the proof-of-stake protocol, miners will no longer be needed. Instead, users will validate and check new transactions before adding them to the blockchain. They will be chosen based on the number of tokens they have. Just like miners, holders of wagered tokens will be rewarded with Ethereum over the network.

Ethereum already has a new proof-of-stake mechanism operating simultaneously in the Beacon chain. The merger refers to the event where the two Ethereum chains will come together, ending the original work confirmation consensus protocol.

Technical Market Outlook:

The ETH/USD pair has been rejected from the main channel lower line around the level of $1,100, so the bounce from the level of $1,008 has failed to rally. The bears had managed to push the price below the level of 50% of the last up candle seen on the H4 time frame chart and are getting ready for another push to the downside. Other supports are seen on the levels of $1,072, $1,048 and $1,008. The larger time frame chart trend remains down and as long as the key short-term technical resistance is not clearly violated, the outlook remains bearish.

Weekly Pivot Points:

WR3 - $1,602

WR2 - $1,421

WR1 - $1,352

Weekly Pivot - $1,194

WS1 - $1,119

WS2 - $951

WS3 - $891

Trading Outlook:

The down trend on the H4, Daily and Weekly time frames had broken below the key long term technical support seen at the level of $1,420 and bears continue to make new lower lows with no problem whatsoever. 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 target for bears is located at the level of $1,000. Please notice, the down trend is being continued for the 11th consecutive week now.