Crypto Industry News:
The Canadian regulator, the Ontario Securities Commission (OSC), accused the Coinsquare exchange of manipulating the market and misleading customers about the volume of trading.
OSC claims that Coinsquare, who was accused of "wash-trading" and hacking reports, "has engaged in conduct that goes against Ontario's security laws." The regulator also named its founders Virgile Rostand, CEO Cole Diamond and Compliance Director Felix Mazer as respondents. A meeting on this matter will be held on July 21.
In its complaint, the OSC said Diamond ordered Rostand to inflate it in March 2018. Then Rostand came up with a solution that allowed the stock exchange to start trading in the "wash" mode. "Wash-trading" refers to artificially inflating the volume of transactions by executing large market transactions on your own orders, so it appears that large transactions have taken place but no assets have changed hands. From July 17, 2018 to December 4, 2019, Coinsquare conducted approximately 840,000 transactions with a total value of approximately 590,000 BTC, OSC reported. They accounted for over 90% of the trading volume on the stock exchange.
Despite workers' concerns, Coinsquare continued its wash-trading business and thus manipulated the market and consumers, OSC said. The regulator asked for information on stock market activity, but Coinsquare did not report any irregularities and said it "is taking steps to prevent market manipulation and stressed that the controls it said could help detect such behavior." The OSC also said that Coinsquare was provided by an employee after expressing concerns about wash-trading.
Reddit users have become suspicious of Coinsquare's activity on two separate occasions. Vice also reported leaking documents that revealed diamonds were ordered.
Technical Market Outlook:
The ETH/USD pair has been testing the short-term trend line resistance around the level of $240. Any violation of this trend line will open the road towards the next technical resistance seen at the level of $244.66. It is worth to notice, that this trend line has been tested twice already and all bullish attempts had failed. If the history repeats again, then the nearest technical support is seen at the level of $235.42 and $230.02. The neutral momentum indicator doe not support neither bulls nor bears for the moment.
Weekly Pivot Points:
WR3 - $258.07
WR2 - $250.97
WR1 - $242.31
Weekly Pivot - $235.59
WS1 - $227.18
WS2 - $291.82
WS3 - $211.48
Trading Recommendations:
The volatility on Ethereum is now lower than usual, so all the dynamic moves up and down might reverse quickly. The larger time frame trend on Ethereum remains down and as long as the level of $288 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred. The next key technical support is seen at the level of $174.82.