- Bureau of Labor Statistics will be releasing the US nonfarm payrolls data tomorrow.
- ETH/USD pair is trading with a slight bearish bias at the 3,795 level, which has dropped around -0.75%.
- Forex trading participants may look for a buy trade above the $3686.95 level to the target of $3989.01.
On Thursday, the ETH/USD pair is trading with a slight bearish bias at the 3,795 level, which has dropped around -0.75%. The day before, the ETH/USD closed at $3835.96 after placing a high of $384.00 and a low of $3384.89. If you are wondering what to expect and where to buy DASH, let’s find out below…
NFTs and DeFi apps underpin demand for the Ethereum Network.
The ETH/USD extended its gains for the second consecutive session and reached its highest level since the start of May towards the $3500 level. The native token of the most-used blockchain, Ethereum, jumped about 36% in August. It started the new month with massive gains after the demand for NFTs and DeFi apps surged substantially during the past few months.
Decentralized talent network Braintrust has officially launched its BTRST token on the Ethereum mainnet to increase the adoption of its services. The project was launched in June 2020, and since then, it has generated about $31 million in gross service revenue.
On Wednesday, the company announced that it had tripled in size and boasted clients including Goldman Sachs, American Eagle, Outfitters, Atlassian, Porsche, Under Armour, and Wayfair. The project listing on its network has also increased, with the average monetary value of a project at $57,000, with some as large as $300,000.
The company said that the new token would have a limited supply of 250 million tokens, and its distribution has given over 50,000 members direct ownership of the platform. This news added to the value of ETH/USD as the adoption of the Ethereum blockchain for such development projects is increasing rapidly.
ETH update London hard fork supports Ethereum
Another feature that could be attributed to the rising prices of the ETH/USD was the latest ETH update London hard fork. It has started burning a fraction of its gas fees. The introduction of EIP-1559 has removed almost 156,986 ETH worth about $555 million from the supply. It‘s making the ETH coin deflationary with time and adding to the value of ETH/USD.
The rising demand for the Ethereum blockchain for NFTs and DeFi apps despite its higher fees. It’s due to the supply squeeze from EIP-1559, which is also a factor that adds additional gains to the value of ETH/USD.
Ethereum hosts more than 200,000 ERC tokens, some of which are among the top 100 largest cryptocurrencies. It is also reported that the total value locked inside the Ethereum-backed DeFi protocol has crossed about $100 billion.
A weaker US dollar underpins the ETH/USD pair.
The declining price of the US dollar also added to the rally of ETH/USD. The greenback came under heavy pressure after the ADP job creation data fell short of expectations in August.
The dismal jobs data added weight to the US dollar, which was already declining because of the dovish remarks of Jerome Powell at the Jackson Hole symposium. The US Dollar Index, which measures the greenback’s value against the basket of six major currencies, fell to 92.5 level. Eventually, it helped ETH/USD post gains for the day as both have a negative correlation.
US nonfarm payrolls data
The Bureau of Labor Statistics will be releasing the US nonfarm payrolls data tomorrow, and that’s expected to perform worse compared to the previous month.
Ethereum Price Prediction – Technical Levels
Support Resistance
3533.90 3989.01
3231.84 4142.06
3078.79 4444.12
Pivot Point: 3686.95
Ethereum to complete 38.2% Fibonacci Retracement- Where to Buy?
The Ethereumprice prediction remains bearish below an immediate resistance level of $3,850. On the 4-hour chart, the ETH/USD pair has entered the overbought zone, and the closing of candles below this level supports the chances of a bearish correction in the pair.
On the downside, the ETH/USD pair may find next support at the 23.6% Fibonacci correction level of 3,690 level. An additional breakout below 3,690 support level could open further retracement until the 38.2% Fibonacci retracement level of 3,585 level.
On the 4 – hour timeframe, the 50 day EMA (Exponential Moving Average – Red Line) holds at the $3500 level, demonstrating a strong bullish trend in ETH. The leading indicator, Stochastic RSI, is also in a buying zone, supporting a bullish trend in the ETH/USD pair.
Accordingly, forex trading participants may look for a buy trade above the $3686.95 level to the target of $3989.01. Alternatively, we can place a sell-stop below $3686.95 to target the $3550 level. All the best.
Where to Buy ETH/USD?
You can buy it on eToro. It’s one of the trusted exchange platforms in the crypto space. eToro supports copy trading, which allows new traders to learn from market experts. eToro also charges low trading fees and commissions.
Looking to buy or trade Ethereum now? Invest at eToro!
Capital at risk
Share
