23rd November 2021 | ZebPay Trade-Desk
As Ethereum (ETH) moves closer to the new proof-of-stake (PoS-) powered chain (ETH 2.0), the recent updates to its blockchain are making Ether (ETH) deflationary in nature. The upgrades have caused a deflationary issuance of ETH, where the burning of a portion of transaction fees has surpassed the issuance of new ETH through mining. This is an important factor that is likely to drive the value of the asset upward in the months and years to come after ETH 2.0 is fully operational.
ETH had been trading in an uptrend for the past three months and it made an all-time high of $4,868. However, the bulls were unable to push the prices above the psychological level of $5,000 as the asset faced stiff resistance at the top and witnessed a sharp correction. The price broke the uptrend line and the 20 Day Moving Average and fell almost by 18% making the low of $3,958. . Technically, on a weekly time frame, ETH has made a ‘ Cup and Handle’ pattern (Bullish Pattern) with a neckline at $3900 and if the prices hold and sustain above these levels then the bulls may resume the up move. A break or close below $3,900 may lead to the further downfall and the asset may slide to the next support level which is at $3,650
| Support 2 | Support 1 | Asset | Resistance 1 | Resistance 2 |
| $3,650 | $3,900 | ETH | $4,450 | $4,850 |
Disclaimer: This report is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any investor. All investors should consider such factors in consultation with a professional advisor of their choosing when deciding if an investment is appropriate. The Company has prepared this report based on information available to it, including information derived from public sources that have not been independently verified. No representation or warranty, express or implied, is provided in relation to the fairness, accuracy, correctness, completeness or reliability of the information, opinions or conclusions expressed herein. This report is preliminary and subject to change; the Company undertakes no obligation to update or revise the reports to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. Trading & Investments in cryptocurrencies viz. Bitcoin, Bitcoin Cash, Ethereum etc.are very speculative and are subject to market risks. The analysis by the Author is for informational purposes only and should not be treated as investment advice.
