Ethereum at 360 ° # 1: Analysis of May 3, 2021

Favorites icon

Hello everyone, my name is Akinabourse and I’ll meet you again for an extension of our 360 ° section. From now on, every Monday I will publish an analysis on Ethereum! As always, on-chain data including an overview of funding to end with technical analysis. Ethereum at 360 °, first episode, it’s now!

Golden ethereum on dark background

Interest in Ethereum?

First, let’s highlight the transactions on the network. They are constantly increasing, despite the increase in costs. This shows a craze for Ethereum and foreshadows a bright future if ETH 2.0 goes well.

Ethereum transaction

A healthy rise?

Now I’m going to talk about funding. Some of you may not know this term, and that’s good, because I’ll take the time to explain it.

The funding is a periodic payment between long and short traders, based on the difference between the price of the futures contract and the spot price. This micro payment makes it possible to regulate and reduce the difference between the 2 contracts so that the price of the future contract is as close as possible to the index. A future contract more expensive than the index will provoke a strong funding and therefore the longs will pay for the shorts to push people into shorts and thus regulate the price.

Here the funding is correct, almost zero, although the price of Ethereum continues to climb. So healthy increase!

An Ethereum at $ 3000!

What a course for Ethereum Since 1 year ! In Weekly, little to say, the uptrend continues and intensifies. A pullback at the start of the year on the $ 1,400 was a great buying opportunity.

AT Ethereum

In Daily, the uptrend is also intact. We can see a trendline which supports the price with different support zones which made the price rebound.

AT Ethereum

The price has been deviating from this trendline lately, but could come back for it along with the potential support area of ​​$ 2600.

A Fibonacci extension gives us a goal of $ 3,700 to be taken with a grain of salt of course.

One more interesting thing to note is that when the price crosses a psychological threshold it does not come back below that zone.

Ethereum thresholds

I qualify my remarks by the fact that the price has rarely exceeded these key thresholds with such an increase. A slight retracement seems necessary despite everything and could call into question my assertion. Example with $ 1000 and $ 2000

It was the first issue of this “Ethereum 360 °” series. Remember never invest more than what you can afford to lose and most importantly, LEARN MORE. Good trade and see you next Monday for a new Ethereum article!

More actions

Favorites icon

Passionate about technical analysis and technology, I have been diligently following cryptocurrencies since 2017.
Beyond trading and investing, I try to democratize, in my own way, the ecosystem that will undoubtedly change our habits of tomorrow!


The comments and opinions expressed in this article are those of the author alone, and should not be considered as investment advice. Do your own research before making any investment decisions.


Related Articles

Back to top button