02.11.202209:29 Forex Analysis & Reviews: Technical Analysis of ETH/USD for November 2, 2022

Crypto Industry News:

As digital assets continue to fight crypto after a massive sell-off across the crypto space, Ethereum co-founder Vitalik Buterin said crypto is still a better investment than gold.

Many industry pundits expected gold to do much better amid stubbornly high global inflation. However, the precious metal has been under pressure from the strong US dollar and higher government bond yields, which are rising in light of the aggressive tightening policy pursued by the Federal Reserve.

In a recent tweet, Buterin criticized gold as a decentralized asset touted as a replacement for traditional money, stating that cryptocurrency is a better investment option.

Co-founder Ether said gold is "incredibly inconvenient", "difficult to use" and "doesn't support secure storage options like multisig."

Buterin said the precious metal is especially difficult to deal with "transactions with untrusted parties."

According to him, "gold has less adoption than crypto, so crypto is a better option."

Buterin's comment was in response to New York Times bestselling author Soonish, Zach Weinersmith, who questioned the superiority of cryptocurrencies over gold. Weinersmith asked why not choose gold, looking for an alternative to centralized power for money.

The discussion on the size of cryptocurrencies in relation to gold has been going on since Bitcoin's debut in global salons. And it was not finally settled by either party. Gold supporters hold out bravely, and central banks around the world prefer to accumulate gold in vaults over Bitcoin. Buterin seems to have forgotten one big advantage of gold over BTC. Gold can be transferred without a trace, but not Bitcoin.

Technical Market Outlook:

The ETH/USD pair has made a 7% pull-back from the rally high located at $1,663. The market keeps trading below the technical resistance located at the level of $1,594 and below the local trend line as well. The momentum on the H4 time frame chart has broken below the level of fifty and points to the downside. The nearest technical support is seen at $1,513 and the level of $1,594 will now act as the intraday technical resistance.

Weekly Pivot Points:

WR3 - $1,647

WR2 - $1,1612

WR1 - $1,596

Weekly Pivot - $1,578

WS1 - $1,561

WS2 - $1,543

WS3 - $1,509

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.