FX.co ★ Technical Analysis of ETH/USD for July 22, 2022

Crypto Industry News:

Dubai - one of the largest innovation hubs and the host of Expo 2022 is not slowing down in its efforts to become the most open to blockchain country in the world. In a recently published development strategy, Dubai strongly focuses on one of the most popular trends today - the Metaverse.

Prince bin Mohammed's roadmap for the coming years aims to set the standard for other countries willing to engage in the development of Web 3.0. Currently, Dubai is home to over 1,000 companies operating in various branches of blockchain technology, which together contribute to the emirate's budget with a significant amount of USD 500 million annually. The ambitious plan assumes that Dubai will achieve three milestones by the end of 2027:

1. Creation of 40,000 new jobs in the blockchain sector, mainly in the development of Metaverse.

2. Increasing the number of companies operating in the crypto sector to at least 5,000.

3. Contribution to the emirate's budget with revenues of $ 4 billion from the cryptocurrency sector.

One of the proofs of how seriously Dubai is taking its plans is the announcement of the opening of the world's first Metaverse Hospital. Thanks to the applied 3D and Virtual Reality technologies, patients who are permanently or for a longer period of time in bed will be able to take virtual walks or even participate in sports activities, which is to positively affect the rehabilitation process.

According to the assurances of Prince bin Mohammed, Dubai intends to expand its infrastructure and refine its laws and regulations so that investing in this emirate becomes an obvious choice for companies from the blockchain sector.

Technical Market Outlook:

The ETH/USD pair had paused the rally at the level of $1,631, just ahead of the key short-term technical resistance located at $1,710. The momentum is at the level of 70 points already, so the bulls are now fully controlling the market, however the market conditions are now extremely overbought. The intraday technical support is seen on the level of $1,319 and $1,281. The larger time frame trend remains down, however the recent breakout might be a beginning of a bigger bounce even towards the level of $1,750.

Weekly Pivot Points:

WR3 - $1,617

WR2 - $1,509

WR1 - $1,470

Weekly Pivot - $1,401

WS1 - $1,362

WS2 - $1,294

WS3 - $1,185

Trading Outlook:

The down trend on the H4, Daily and Weekly time frames had broken below the key long term technical support seen at the level of $1,420 and bears continue to make new lower lows with no problem 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 next target for bears is located at the levels below $1,000, like the last swing low seen at $880. Please notice, the down trend is being continued for the 13th consecutive week now.