What To Watch For As Uniswap Launches V3 On Wednesday

Uniswap UNI/USD is the largest decentralized exchange built on the Ethereum ETH/USD blockchain. The exchange allows users to swap cryptocurrencies without creating an account.

The company is scheduled to launch “Uniswap v3” on the Ethereum mainnet on Wednesday. Uniswap v3 is the newest version of the exchange and introduces concentrated liquidity and multiple-tier fees. Uniswap states the new features will make the exchange “the most flexible and efficient automated market maker ever designed” making gas fees cheaper on Ethereum transactions.

Uniswap was up 1.85% at $43.06 at the last check.

Below is a technical analysis of the chart.

Uniswap Daily Chart Analysis

• Uniswap looks to have broken out of what technical traders may call an ascending triangle pattern and is now trying to find support where it once found resistance.
• The crypto is trading above both the 50-day moving average (green) as well as the 200-day moving average (blue). This indicates bullish sentiment throughout the recent months.
• The moving averages are a place where a bounce could take place. This indicator potentially holds as support in the future.

Key Levels To Watch

• Uniswap previously saw resistance near the $35 level, until early May when it was able to cross above in what technical traders may call a breakout of an ascending triangle pattern.
• Higher lows have built up to this resistance, creating the ascending triangle where the price was condensed between the support and resistance levels.
• The $35 level is now looking to turn into support. A fall below this and Uniswap might still see a bounce at the higher low trendline. The uptrending support line may act as the line in the sand, and below this level could signal the start of a downtrend.
• As long as Uniswap continues on the uptrend, bulls should maintain control.

See Also: Is Uniswap (UNI) a Good Investment?

Photo: Courtesy of Uniswap