Latest News

Technical Analysis of ETH/USD for January 20, 2022


Relevance up to 09:00 2022-01-21 UTC+00

Crypto Industry News:

According to reports from Intel, one of the largest computer processor manufacturers intends to unveil a new ultra-efficient ASIC miner for Bitcoin under the name Bonanza Mine at the upcoming International Solid-State Circuits Conference in February 2022.

Intel filed a patent in November 2018 in which it presented similar ideas for “Bitcoin High-Performance Mining”. It is suspected that the processes described in the patent may be found in a product displayed at the ISSCC.

According to the patent, the ASIC behind Bonanza will be able to perform calculations just as efficiently as other ASICs, while eliminating the need for duplicate or redundant calculations. The system is expected to reduce total energy consumption by around 15%.

The processors used to mine cryptocurrencies are known to be subject to scarcity and declining sales. Intel would become a competitor to companies like Bitmain, with the proposed Ether ASIC still pending release, and Nvidia, a company that also felt chip sales declines. Demand for cryptocurrency mining continues to grow despite the constant shortage of processors and inconsistent production costs.

It is unclear whether Intel will bring the Bonanza excavator to retail, or whether it will be for industrial or research use only. Regardless, this step has the potential to catapult Intel into a major competitor in the cryptocurrency mining industry.

Technical Market Outlook

The ETH/USD pair has made another lower low at the level of $3,044 as it approaches the key psychological level of $3,000. The momentum is below the level of fifty and the same situation is with the stochastic oscillator – the market is trading in the oversold conditions. The market participants await the event that will trigger the up move again, but the swing low located at the level of $2,926 is dangerously close. The nearest technical support is seen at the level of $3,080 and the key short-term technical resistance is seen at $3,185 and $3,385.

Weekly Pivot Points:

WR3 – $4,051

WR2 – $3,728

WR1 – $3,566

Weekly Pivot – $3,237

WS1 – $3,077

WS2 – $2,765

WS3 – $2,585

Trading Outlook:

The WXYXZ complex corrective cycle might soon be terminated, so the next long-term target for ETH is seen at the level of $5,000. Nevertheless, in order to continue the long-term up trend, the price can not close below the technical support at the level of $2,644. The level of $1,728 (61% Fibonacci retracement of the last big impulsive wave up) is still the key long-term technical support for bulls. The level of $3,677 is the key mid-term technical support for bulls.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Benefit from analysts’ recommendations right now

Top up trading account

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.

Earn on cryptocurrency rate changes with InstaForex

Download MetaTrader 4 and open your first trade

Technical Analysis of BTC/USD for January 20, 2022

Previous article

Technical Analysis of EUR/USD for January 20, 2022

Next article

You may also like


Leave a reply

Your email address will not be published.

More in Latest News