Analysis Cryptos Support & Resistance

Technical Analysis of ETH/USD for October 31, 2022

Crypto Industry News:

Merge, which is considered to be one of the most important Ethereum updates to date, immediately reduced the power consumption of the network by 99.9%.

On September 15, Blockchain Ethereum switched from proof-of-work (PoW) to proof-of-stake (PoS) to turn into a greener Blockchain. The result was an immediate and sharp decline in the total energy consumption of the Ethereum network.

Before the Merge update, in 2022, Ethereum’s energy consumption ranged from 46.31 TWh to 93.98 TWh per year. The lowest energy consumption for Ethereum was recorded on December 26, 2019 and was 4.75 TWh per year.

Ethereum’s energy consumption has dropped by more than 99.9% since October 15, and is still very low. As a result, the network’s carbon footprint is now 0.1 million tones of CO2 (MtCO2) per year.

On a per transaction basis, the electricity consumption is just 0.03 kWh and the carbon footprint is 0.01 kgCO2, which is comparable to the energy used while watching YouTube for two hours.

Despite the celebration of Ethereum’s transition to PoS, community members have raised concerns about chain centralization and higher regulatory scrutiny.

Technical Market Outlook:

The ETH/USD pair has been seen making a local pull-back on the H4 time frame chart after the 24% rally hit the level of $1,663. The breakout was strong and might extend even higher as long as the pull-back will not drop more than 7% (price and time overbalance could be made if price drops more than 7%). The momentum on the H4 time frame chart is currently coming off overbought conditions and is approaching the level of fifty. The nearest technical support is seen at $1,513 and the level of $1,593 will now act as the intraday technical resistance.

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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.

The material has been provided by InstaForex Company – www.instaforex.com


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