02.03.202309:37 Forex Analysis & Reviews: Technical Analysis of ETH/USD for March 2, 2023

Crypto Industry News:

Looking at the wear of the so -called 'Gas Fees' on Ethereum Glassnode indicated that the NFT market is the main increase in network activity. This market, despite the ongoing bear market and the return of uncertainty to the market, looks like it has been experiencing a 'second youth'. After a sharp decrease in user activity at the end of 2022, the total gas consumption of NFT transactions increased by 97% throughout January and February and is approaching the levels of euphoria from 2021. According to Glassnode, the main catalyst for the NFT market becomes the OpenSea, Blur platform and Ordinals on Bitcoin.

The BLUR's interest led to an increase in demand for blocking space. This, in turn, caused an increase in fees for validators and more ETH burned via the EIP1559 protocol introduced in 2021. However, we are far from the fundamental, significant increase in the ETH network. Although there has been a noticeable increase in the total on-chain activity, both the growth and the number of new addresses are still 40% lower than in February 2022, and the monthly average remains below the annual signaling the maintaining negative momentum. On this basis, Glassnode formulates the conclusion that NFT's interest is more common among existing users, without a special participation of a tide of new users to the Ethereum network. This, in turn, leads to the conclusion that OpenSea competes for the share in the NFT market with Blur around the same base of users of the cryptocurrency sector.

Technical Market Outlook:

The ETH/USD pair has reversed from the level of $1,677 after three wave up move had been terminated with a Shooting Star candlestick pattern on H4 time frame chart.The intraday technical resistance is seen at the level of $1,677 and $1,680, so any breakout above this levels would open the road towards the February highs seen between $1,720 - $1,8742. On the other hand, a sustained breakout below the level of $1,487 would change the mid-term outlook to bearish, so please keep an eye on the $1,487 technical support (swing low). Any violation of this level would likely extend the drop towards $1,345, but in order to do this, the volatility must increase significantly.

Weekly Pivot Points:

WR3 - $1,672

WR2 - $1,654

WR1 - $1,642

Weekly Pivot - $1,635

WS1 - $1,624

WS2 - $1,616

WS3 - $1,581

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 2022 at the level of $2,029. The key technical support for bulls at $1,281 was broken already and the new swing low was established at $1,074. There is a clear test of the 50 WMA located at the level of $1,080, so any breakout below the moving average and a weekly candle close below moving average will be considered as another indication of the down trend continuation. If the down move will be extended, then the next target for bears is located at the level of $1,000.