FX.co ★ Technical Analysis of ETH/USD for March 9, 2022

Crypto Industry News:

U.S. President Joe Biden is expected to sign an executive ordinance to regulate cryptocurrencies this week. It will oblige the Department of Justice, the Treasury and other government agencies to investigate the legal and economic implications of regulating this emerging asset class.

Joe Biden was due to issue an executive ordinance to regulate digital assets as early as February 2022 within a week, but plans have changed.

Rather than engaging directly in the conflict, the US and its Western allies chose a different approach and imposed countless sanctions on Russia, its president and the oligarchs.

Cryptocurrencies also played a role in the whole situation. On the one hand, the media reported that Russians (and Ukrainians) turned to digital assets due to the devaluation of their national currencies. On the other hand, global regulators have raised concerns that Russian oligarchs may use these types of assets to circumvent the embargo imposed on them.

Technical Market Outlook

The ETH/USD pair has bounced from the temporary bottom seen at the level of $2,444 and broke through the technical resistance seen at $2,611. The next target for bulls is seen at the level of $2,760 and strong and positive momentum together with the market conditions bouncing from the oversold levels supports the short-term bullish outlook for ETH.

Weekly Pivot Points:

WR3 - $3,323

WR2 - $3,179

WR1 - $2,855

Weekly Pivot - $2,718

WS1 - $2,386

WS2 - $2,240

WS3 - $1,190

Trading Outlook:

The market keeps trying to bounce higher after over the 50% retracement made since the ATH at the level of $4,868 was made. The level of $3,192 is the next key Fibonacci retracement for bulls, but the bulls had failed to break through three times already. On the other hand, the next long-term technical support is located at $1,721 (61% Fibonacci retracement of the last big impulsive wave up) is still the key long-term.