Technical Analysis of ETH/USD for April 11, 2022

Crypto Industry News:

The EU Parliament has named ESMA, the European Securities and Markets Authority, as the leading cryptocurrency regulator in the region in its latest draft regulation on crypto markets. A European organization would be to grant licenses to institutions and exchanges related to cryptocurrencies.

MiCA's latest draft, the Markets in Crypto Assets Regulation, has introduced significant changes to the way cryptocurrency licenses are approved for organizations. The draft, approved by the European Parliament, assigns the role of ESMA, the European Securities and Markets Authority, undermining the authority of institutions such as Bafin in Germany and CNMV in Spain.

The project follows the system that the EU also uses to approve banking licenses in a region where the ECB is the only body capable of granting or revoking banking licenses to entities. However, in earlier iterations of this project, national regulators were responsible for this task. The reasons for this change have not yet been disclosed.

Technical Market Outlook:

The ETH/USD pair has been trying to bounce from the 38% Fibonacci retracement of the last wave down all weekend long, however the bounce was capped at the level of $3,287. The market reversed and is currently approaching the 38% Fibonacci retracement level again. If the level of $3,146 is broken, then the next target for bears is seen at $3,012 (50% Fibonacci retracement level) and $2,878 (61% Fibonacci retracement level). The weak and negative momentum on the H4 time frame chart supports the short-term bearish outlook.

Weekly Pivot Points:

WR3 - $3,919

WR2 - $3,762

WR1 - $3,490

Weekly Pivot - $3,319

WS1 - $3,064

WS2 - $2,873

WS3 - $2,612

Trading Outlook:

The market bounce was stopped at the level of $3,512, which was the key Fibonacci retracement for bulls. The bears are now in control of the market and are heading lower, towards the level of $3,000 first, then lower towards $2,941.