empty
02.01.2024 01:26 PM
Technical Analysis of ETH/USD for January 2, 2024

Understanding the Crypto Landscape: Ethereum's Challenges and Opportunities

As of January 2, 2024, Ethereum (ETH), a leading cryptocurrency, demonstrates resilience and potential for growth. Currently trading near a recent high, Ethereum's market dynamics are influenced by various factors, including technological advancements and industry trends.

This image is no longer relevant

The Impacts of Rising Transaction Fees

Vitalik Buterin, Ethereum's co-founder, voices concerns over escalating transaction fees. This trend has somewhat diverted from the original vision of Web3, which aimed for a more open internet. High fees have predominantly attracted a specific user base, mainly those engaging in high-risk transactions. This shift has caused a rift between the cryptocurrency community and advocates of non-blockchain decentralisation.

The Role of Non-Financial Applications

Buterin notes that Ethereum Name Service (ENS) stands out as a significant non-financial application used extensively. However, the dominance of financial applications has overshadowed the broader utility of blockchain technology.

Technological Progress Amid Challenges

Despite these challenges, Ethereum has witnessed substantial technological progress. Buterin highlights advancements such as rollups, ERC-4337 account abstraction standard, and more efficient clients. Particularly notable are developments in zero-knowledge proofs, offering a balance between privacy and security.

Technical Analysis of ETH/USD

The ETH/USDT pair recently achieved a new high at $2,444. The market currently favors bulls, indicated by the support levels at $2,375, $2,389, and $2,400. However, the momentum indicator suggests an overbought market, hinting at a potential pullback.

Weekly Pivot Points: Key Levels to Watch

  • Resistance: WR3 - $2,562, WR2 - $2,471, WR1 - $2,440
  • Pivot: $2,380
  • Support: WS1 - $2,340, WS2 - $2,289, WS3 - $2,199

Long-term Market Outlook

The long-term outlook remains bullish as long as Ethereum stays above the critical support level of $1,368. The mid-term key support is at $1,913, with a breach below this level potentially shifting the long-term perspective to bearish.

Intraday Indicators: A Bullish Sentiment

  • Technical Indicators: 19/21 suggest a Buy, 2 remain Neutral.
  • Moving Averages: 16/18 indicate Buy, 2 signal Sell.
  • Market Sentiment: Predominantly bullish (77% bulls).

Key Takeaways for Traders

  1. Bull Scenario: Maintain vigilance for potential pullbacks but consider the bullish sentiment and technical indicators favoring an uptrend. Key supports at $2,375 and $2,389 offer opportunities for strategic positioning.
  2. Bear Scenario: A sustained drop below $2,180 could signal a shift to bearish outlook. Traders should monitor for any break below the mid-term support at $1,913 for longer-term implications.
  3. Technological Impact: Stay informed about Ethereum's technological developments, as they can significantly influence market dynamics and offer new opportunities.

Conclusion: Ethereum's journey is marked by technological innovations and evolving market trends. While the current bullish trend offers potential, traders should balance optimism with caution, considering both technical indicators and the broader impacts of technological advancements.

Useful Links
Important Notice

The begginers in forex trading need to be very careful when making decisions about entering the market. Before the release of important reports, it is best to stay out of the market to avoid being caught in sharp market fluctuations due to increased volatility. If you decide to trade during the news release, then always place stop orders to minimize losses.

Without placing stop orders, you can very quickly lose your entire deposit, especially if you do not use money management and trade large volumes. For successful trading, you need to have a clear trading plan and stay focues and disciplined. Spontaneous trading decision based on the current market situation is an inherently losing strategy for a scalper or daytrader.

#instaforex #analysis #sebastianseliga

Summary
Urgency
Analytic
Sebastian Seliga
Start trade
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Trading Recommendations for the Cryptocurrency Market on August 1

Bitcoin and Ethereum saw a significant decline, ending the month with profit-taking. Despite the correction, July was fairly positive—especially for Ethereum, which gained over 49% in price. Bitcoin rose

Miroslaw Bawulski 09:34 2025-08-01 UTC+2

Bitcoin plunges to around $114,300, while Ethereum tests $3,615

The beginning of the new month has been relatively carefree, considering that just earlier this week, Bitcoin was trading near $120,000. Now, it's crucial to see whether large players will

Jakub Novak 09:25 2025-08-01 UTC+2

Will Cardano continue its decline and reach its nearest support level? Friday, August 01, 2025.

Cardano – Friday, August 01, 2025. With the EMA (5) which is below the EMA(200) and the RSI (14) indicator at Extreme Bearish levels, Cardano has the potential to experience

Arief Makmur 08:02 2025-08-01 UTC+2

Could Polkadot continue the path to its support level? Friday, August 01, 2025.

Polkadot – Friday, August 01, 2025. Sellers are quite dominant in the Polkadot cryptocurrency, as confirmed by the Death Cross EMA position and the RSI(14) indicator in Extreme Bearish conditions

Arief Makmur 08:02 2025-08-01 UTC+2

First US crypto policy report opens new era

Bitcoin briefly dipped following the Fed's recent decision but quickly rebounded, maintaining its range-bound trade between $116,000 and $120,000. This sideways movement may soon lay the groundwork for a breakout

Jakub Novak 11:33 2025-07-31 UTC+2

Trading Recommendations for the Cryptocurrency Market on July 31

After a solid pullback to around $ 116,000 yesterday, Bitcoin is once again trading at $118,200 today, signaling continued demand. Ethereum has also recovered all its losses

Miroslaw Bawulski 09:18 2025-07-31 UTC+2

Federal Reserve's meeting today may boost crypto market

The Federal Reserve's policy meeting today could provide a boost to the cryptocurrency market. Even the slightest hint from the committee about a potential interest rate cut in September would

Jakub Novak 13:19 2025-07-30 UTC+2

Trading tips for crypto market on July 30 (North American session)

Bitcoin remains firmly above $118,000, clearly targeting a potential breakout above $120,000. Ethereum has seen a slight correction but continues to trade within a channel, signaling further upside potential. Today's

Miroslaw Bawulski 13:12 2025-07-30 UTC+2

Time to consider buying XRP?

Bitcoin and Ethereum continue to trade around the same levels, with no significant shifts in market dynamics. If current prices make these assets seem too expensive, perhaps it is worth

Jakub Novak 11:18 2025-07-30 UTC+2

Trading Recommendations for the Cryptocurrency Market on July 30

Bitcoin continues to trade within a narrow sideways channel, and a breakout will determine its next direction. Ethereum is showing the same pattern. Meanwhile, while you're considering whether it's worth

Miroslaw Bawulski 09:05 2025-07-30 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.