FX.co ★ Technical Analysis of ETH/USD for July 25, 2022

Crypto Industry News:

The Central African Republic, one of the countries served by the Bank of Central African States, passed a law in April adopting Bitcoin as legal tender.

The Bank of Central African States, which serves Cameroon, the Central African Republic, Chad, Equatorial Guinea, Gabon and the Republic of the Congo, may be closer to releasing a central bank's digital currency at the instigation of its own board of directors.

The board sent an email urging the regional bank to introduce digital currency to modernize payment structures and promote regional financial integration. The Central African Republic (CAR) passed legislation in April to adopt Bitcoin (BTC) as the country's legal tender, but did not recognize the central bank's digital currency, the CBDC.

The Central Bank of Nigeria was one of the first in the region to launch a CBDC called eNaira in October 2021, while the South African Reserve Bank is still exploring the use of CBDC as part of the Project Khokha initiative.

The Central African Bank of States also criticized the CAR for accepting BTC as legal tender, calling the move "problematic" and something that could have a "significant negative impact" on the Central African monetary union.

Technical Market Outlook:

The ETH/USD pair had paused the rally at the level of $1,662 after the Bearish Engulfing candlestick pattern was made at the daily time frame chart. The market conditions are now extremely overbought and the market is coming off this levels. The intraday technical support is seen on the level of $1,463 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 if the bulls will resume the rally after the pull-back.

Weekly Pivot Points:

WR3 - $1,776

WR2 - $1,660

WR1 - $1,592

Weekly Pivot - $1,545

WS1 - $1,476

WS2 - $1,429

WS3 - $1,313

Trading Outlook:

After the 13 consecutive weekly down candles on Ethereum, the down trend might have been terminated at the level of $880. 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, but the bulls had managed to increase the price of ETH by 90% so far. The next target for bulls is seen at the level of $1,710 and $1,954.