ETHUSD (Ethereum) – Week 31 – Can the bulls keep the pace?

The hashing power securing the world's two largest blockchains is on track of a slow recovery, as some Chinese miners have gradually completed their relocation after the crackdown. Although China's initial crackdown comment specifically said it was about Bitcoin mining, the shutdown orders that were eventually handed down locally also affected the mining farms that housed graphic cards and ASIC miners securing the Ethereum network. That situation sparked Ethereum miners to dump their used GPUs on the secondhand marketplace. Similarly, the hash rate on Ethereum also took a hit by over 20% after China's crackdown orders but has steadily recovered to above 500 terahashes per second.

Synthetix has implemented a decentralized exchange using Optimistic Ethereum, an Ethereum layer 2 network. Synthetix explained that its decision to use a second-layer platform was motivated by Ethereum’s high transaction fees. “As with many other DeFi applications, high gas costs are a central component of the UX issues faced by Synthetix in the past,” it noted.

From a technical standpoint, Ethereum behaved as we forecasted in our last technical report. It made an up move that reached the 2,3-2,4k area. Now the price finds itself at the small resistance area marked on the chart and it is preparing for the next move to the upside (higher probability). If we take into account that we are in a big weekly downtrend a retest of the support has always a probability of happening but we think it is much lower now.

Trade with care.

Best regards,
Financial Flagship

Disclaimer: The analysis provided is purely informative and it should not be used as financial advice. Remember that you need a plan before you start trading; so, take this knowledge and use it as a guidebook that will ultimately help you understand the market and easily predict your next move.