Technical Analysis of ETH/USD for October 18, 2023
October 18, 2023 9:23 am
Crypto Industry News:
For many investors and validators on the Ethereum network, the decline in the queue waiting for staking is a signal of weakening demand for the ETH currency. Just a few months ago the situation was completely different. Last summer, potential validators had to wait up to 45 days to start staking their ETH.
When they deposit their ETH, they must wait to be assigned to the appropriate part of the network before they can verify transactions and receive rewards. Recent statistics show that the entire process has become instantaneous, which was unattainable in the past.
Not only has the waiting time for staking reduced to zero. Validator rewards have also dropped noticeably. According to recent data, since May this year, the remuneration for validators for staking Ethereum has dropped by as much as 62%. Today, the annual rate of return (APY) on this process is only 3.3%.
Glassnode, an analytics company, provided additional information on the current situation on the Ethereum network. Over the past three months, the daily amount of newly staked ETH has decreased by 22%, based on a 30-day moving average.
It is very possible that ETH staking has become less attractive for many validators, given the reduced rewards and increased number of competing cryptocurrencies on the market. On the other hand, new validators now have the opportunity to join the network immediately without having to wait.
Technical Market Outlook:
The ETH/USD pair has been seen moving down from the after a spike to the level of $1,640, which is just above the 50% Fibonacci retracement of the last wave down. The spike up was quickly faded, so this is another indication of how strong the bearish pressure is. The intraday technical resistance is seen at $1,640 and the intraday technical support is seen at $1,542. The momentum is strong and positive, but it is very close to the neutral level. Any violation of the level of $1,542 will open the road towards the key technical support seen at $1,520.
Weekly Pivot Points:
WR3 – $1,663
WR2 – $1,601
WR1 – $1,589
Weekly Pivot – $1,569
WS1 – $1,557
WS2 – $1,537
WS3 – $1,506
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. This is the key level for bulls, so it needs to be broken in order to continue the up trend. The key technical support is seen at $1,368, so as long as the market trades above this level, the outlook remains bullish.
The material has been provided by InstaForex Company – www.instaforex.com
Crypto Industry News:
For many investors and validators on the Ethereum network, the decline in the queue waiting for staking is a signal of weakening demand for the ETH currency. Just a few months ago the situation was completely different. Last summer, potential validators had to wait up to 45 days to start staking their ETH.
When they deposit their ETH, they must wait to be assigned to the appropriate part of the network before they can verify transactions and receive rewards. Recent statistics show that the entire process has become instantaneous, which was unattainable in the past.
Not only has the waiting time for staking reduced to zero. Validator rewards have also dropped noticeably. According to recent data, since May this year, the remuneration for validators for staking Ethereum has dropped by as much as 62%. Today, the annual rate of return (APY) on this process is only 3.3%.
Glassnode, an analytics company, provided additional information on the current situation on the Ethereum network. Over the past three months, the daily amount of newly staked ETH has decreased by 22%, based on a 30-day moving average.
It is very possible that ETH staking has become less attractive for many validators, given the reduced rewards and increased number of competing cryptocurrencies on the market. On the other hand, new validators now have the opportunity to join the network immediately without having to wait.
Technical Market Outlook:
The ETH/USD pair has been seen moving down from the after a spike to the level of $1,640, which is just above the 50% Fibonacci retracement of the last wave down. The spike up was quickly faded, so this is another indication of how strong the bearish pressure is. The intraday technical resistance is seen at $1,640 and the intraday technical support is seen at $1,542. The momentum is strong and positive, but it is very close to the neutral level. Any violation of the level of $1,542 will open the road towards the key technical support seen at $1,520.
Weekly Pivot Points:
WR3 – $1,663
WR2 – $1,601
WR1 – $1,589
Weekly Pivot – $1,569
WS1 – $1,557
WS2 – $1,537
WS3 – $1,506
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. This is the key level for bulls, so it needs to be broken in order to continue the up trend. The key technical support is seen at $1,368, so as long as the market trades above this level, the outlook remains bullish.
The material has been provided by InstaForex Company – www.instaforex.com
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