Crypto Industry News:
More than two dozen early employees of Ethereum software company Consensys have filed a lawsuit against Joseph Lubin, their former company, and other parties. They accuse the former of breaking the promise regarding "capital compensation" made when employees joined the company in its initial period of operation, starting from 2014.
The lawsuit filed in New York comes at a special time. Consensys, now valued at over $7 billion, has evolved from its early structure to become a more traditional, centralized company. The lawsuit was filed on October 19, 2023 in New York state court by 27 former employees of the project.
Defendants in the lawsuit include Ethereum co-founder Joseph Lubin, Consensys and JPMorgan Chase. The plaintiffs claim that Lubin persuaded them to join his company at the beginning of its existence by offering shares in its parent company, Consensys AG. Former employees claim that Lubin promised that the project's capital would not be diluted, so their shares would increase in value. However, in 2020, Consensys restructured, transferring key assets to a new entity from Delaware, Consensys Software Inc. (CSI). The plaintiffs claim that they were largely excluded from the restructuring, which made their shares in the original Consensys AG significantly less valuable than they previously were. In other words, they are losing out because of changes in the company's structure.
However, Lubin allegedly breached the agreement that the first employees would "win or lose [solidarity] with Lubin and Consensys." As you might guess, plaintiffs are now seeking damages for breach of contract and breach of fiduciary duty.
Technical Market Outlook:
The ETH/USD pair has been seen moving up towards the level of $1,752, which is the October high's. The next target for bulls is seen at the level of $1,742. The intraday technical resistance is seen at $1,715 and the intraday technical support is located at $1,660. On the other hand, any violation of the level of $1,542 will open the road towards the key technical support seen at $1,520. The strong and positive momentum on the H4 time frame chart supports the short-term bullish outlook for ETH, however the market conditions are now extremely overbought on the H4 time frame chart.
Weekly Pivot Points:
WR3 - $1,777
WR2 - $1,729
WR1 - $1,707
Weekly Pivot - $1,681
WS1 - $1,659
WS2 - $1,632
WS3 - $1,584
Trading Outlook:
The Ethereum market has been seen making lower highs and lower low since the swing high was made in the middle of the August 2022 at the level of $2,029. This is the key level for bulls, so it needs to be broken in order to continue the up trend. The key technical support is seen at $1,368, so as long as the market trades above this level, the outlook remains bullish.