FX.co ★ Technical Analysis of ETH/USD for May 2, 2022

Crypto Industry News:

The European Central Bank (ECB) and the Eurosystem have started searching for companies to participate in the exercise of prototyping customer payment services. Payment service providers, banks and other relevant companies were asked to express their interest in the project.

The Eurosystem, which includes the ECB and the central banks of countries that use the Euro, said it would select up to five front-end service providers based on their capabilities and the use cases presented. While participants do not need to have prior experience with the service they will be prototyping, the experience will be taken into account in the selection process.

Prototype vendors are expected to develop front-end applications according to the specifications of the existing back-end and system interface. They will be free to provide feedback on the existing system, including how it can meet their technical requirements, and will be able to propose additional value-added services. Participants will not be paid for their efforts, but can be included in the next steps in the development of the digital Euro.

The deadline for submitting applications for the project is May 20, 2022. The project will start in August and will end in the first quarter of next year. The investigative phase of experiments related to the digital Euro will end in October 2023. Then the decision of the Eurosystem Governing Council on the development of a true digital currency of the central bank (CBDC) is to be taken.

Technical Market Outlook:

The ETH/USD pair has made a new swing low at the level of $2,717 and is currently trying to bounce higher. In order to make a full V-shape reversal, the bulls must break above the last high seen at the level of $3,178, however, so far the local high was made at the level of $2,979. The nearest technical resistance is seen at $2,979 and the immediate technical support is located at $2,767 and $2,753. The weak and negative momentum supports the short-term bearish outlook with a new target for bears seen at the level of $2,503. The market keeps making lower lows and lower highs on the H4 time frame chart, so the down trend is intact.

Weekly Pivot Points:

WR3 - $3,297

WR2 - $3,159

WR1 - $2,964

Weekly Pivot - $2,841

WS1 - $2,649

WS2 - $2,518

WS3 - $2,324

Trading Outlook:

The down trend on the H4, Daily and Weekly time frames continues with no problems whatsoever. So far every bounce and attempt to rally is being used to sell Ethereum for a better price by the market participants, so the bearish pressure is still high. The key long term technical support is seen at the level of $2,646.