- Poly Network’s tweet discloses a $600 million crypto hack.
- ETH/USD pair has closed a bullish engulfing candle, violating the resistance level of 3,196.
- Forex trading market participants should look for a buy-stop above the $3,225 level.
The ETH/USD was closed at $3139.33 after placing a high of $3230.45 and a low of $3053.51. The pair reached above the $3200 level during early trading hours. However, it failed to remain higher, hold on to gains, and turn red for the day. Ethereum price prediction remains bullish above the $3,196 level.
Biden Infrastructure Bill and Tax Regulation Pressures ETH/USD
Ethereum followed the trend set by the leading cryptocurrency Bitcoin and turned bearish for the day. Investors are concerned about the tax regulation from the Biden Infrastructure bill that required brokers of digital assets to report capital gains earned from cryptocurrencies.
An amendment for the law was proposed before the Senate to define the term “broker” and exclude the bitcoin miners, validators, wallet creators, and software developers. However, this amendment was denied as it failed to gather enough votes from Senate on Tuesday. The news added heavy pressure on the whole cryptocurrency market that eventually dragged ETH/USD to the lower side for the day.
Poly Network’s Tweet Discloses $600 Million Crypto Hack
Another negative news came forth regarding the stolen Ether and other cryptocurrencies worth more than $600 million. The news added pressure on ETH/USD on Tuesday. One of the biggest crypto hacks was disclosed on Tuesday by Poly Network. The company announced on Twitter that hackers attacked the network and stole more than $600 million worth of Ether and other cryptocurrencies.
According to the data provided by Poly Network, hackers managed to transfer 2858 Ether worth about $267 million, 6610 Binance coins worth more than $252 million, and $85 million in USDC tokens from Polygon Network. This news added to the market’s downward trend, and ETH/USD dropped further for the day.
On the flip side, a prominent Turkish sports club Fenerbahce issued its fan token on the Ethereum blockchain. This was done with the partnership of the local crypto exchange Paribus. The initial presale of 500,000 unlocked tokens was completed on Monday, which gathered about 15 million Turkish lira, about $1.75 million in only 30 seconds. This added strength in ETH/USD and further caped loss in its prices on Tuesday.
Furthermore, a celebrity, Mr. Wonderful from ABC TV series Shark Tank, and a crypto investor Kenin O’Leary explained why he was more bullish towards Ethereum than Bitcoin. O’Leary said that if Bitcoin was sound money, then Ethereum was “ultrasound money.” He gave this statement after EIP-1559 went live and raised ETH/USD prices higher. The positive comments related to Ethereum from a celebrity added some support to the cryptocurrency and capped further loss in ETH/USD on Tuesday.
Ethereum Price Prediction – Daily Technical Levels
Support Resistance
3051.75 3228.69
2964.16 3318.04
2874.81 3405.63
Pivot Point: 3141.10
Ethereum Price Prediction – Daily Technical Analysis: Upward Channel Support at 3,050
Ethereum price prediction remains bullish above the $3,196 level. The ETH/USD’s immediate resistance stays at the $3,385 level, and a bullish breakout of this level can extend buying trend until the $3,404 level.
On the 4-hour chart, the ETH/USD pair has closed a bullish engulfing candle, violating the resistance level of 3,196. For now, this same level is working as a support for Ethereum.
The 50 days EMA (exponential moving average – red line) is supporting buying trend in Ethereum. Therefore, the bullish bias is likely to dominate above the $3,150 level. On the bearish side, the immediate support stays at the $3,196 level, which is extended a resistance become support level.
The oscillator tools like Stochastic RSI have entered the buy zone as it holds at 85.72. There’s an excellent opportunity to go long above 3,196 level as the ETH/USD pair may target 3,385 level in the coming days. Hence, the Forex trading market participants should look for a buy-stop above the $3,225 level. The initial target remains at $3,375 and $3,465. All the best.
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