20.10.202207:49 Forex Analysis & Reviews: Technical Analysis of ETH/USD for October 20, 2022

Crypto Industry News:

We've barely forgotten about Merge, and another Ethereum update is on the horizon. This time, developers want to focus on, among others on lowering gas charges. The new trial version is now available. The Pre-Shanghai test network was named Shandong. This means that developers can prepare for deployments.

The update is to take place in 2023. Most likely in the second half. This will be the first Ethereum cryptocurrency update since the transition from proof-of-work to proof-of-stake, Merge, which took place in September 2022.

There will be many changes, and depending on the sources, different priorities are indicated. The most common talk of a few updates:

EIP-4895 - is to enable users to pay out setH and won prizes via Beacon Chain.

EIP-4844 - to offload the main Ethereum network and process operations in layer 2 networks. This is expected to increase network capacity and potentially also contribute to reducing gas bills.

EIP-3540 - Separates encoding from data, which improves performance and allows easier changes to the Ethereum Virtual Machine.

All these changes are expected to positively affect the performance and bandwidth of Ethereum. In addition, at least some of them may also have a positive impact on the experience of ordinary users - you would certainly appreciate the reduction in gas fees.

Technical Market Outlook:

The ETH/USD pair moves lower again as the momentum on the H4 time frame chart is now weak and negative. The local high was made at the level of $1,340 and then the market reversed lower towards the middle of the range The nearest technical support is seen at $1,281 and $1,267. Please keep an eye on the market behavior close to the local trend line (marked orange on chart). The demand zone is now located between the levels of $1,191 - $1,1219.

Weekly Pivot Points:

WR3 - $1,333

WR2 - $1,318

WR1 - $1,311

Weekly Pivot - $1,302

WS1 - $1,295

WS2 - $1,286

WS3 - $1,270

Trading Outlook:

The Ethereum market has been seen making lower highs and lower low since the swing high was made in the middle of the August at the level of $2,029. The key technical support for bulls is seen at $1,281 as a part of the demand zone located between the levels of $1,252 - $1,295. If the down move will be extended, then the next target for bears is located at the level of $1,000.