FX.co ★ Technical Analysis of ETH/USD for October 4, 2022

Crypto Industry News:

Instagram star Kim Kardashian will pay $ 1.26 million to the US Securities and Exchange Commission (SEC) to pay fees related to the EthereumMax promotion.

According to a SEC release, the Commission blamed the star for non-disclosure of the $ 250,000 impact it received for promoting EthereumMax. Kardashian also agreed not to promote any cryptocurrencies for three years.

The celebrity took part in an action called "pump and dump". Received a lot of money for promoting a cryptocurrency of no greater value. It was only "recommended" by famous people, greedy for money. How does pump and dump work?

Well, the cryptocurrency creators who have the most of it spend a lot on promotion. The internet users then invest and raise the price of the asset, and then the authors sell all or most of their coins. In this way, we have a "pump", that is, pumping the valuation, and then "dump", that is, getting rid of an asset that has obtained a high valuation due to earlier promotional activities. An unaware investor thinks that he is allocating money into something attractive, and then it turns out that he will not get back what he spent.

In 2021, Kim Kardashian shared promotional content on her Instagram. The celebrity has one of the largest amounts of followers on social media. Kardashian has approximately 331 million Instagram fans and nearly 74 million Twitter fans.

Technical Market Outlook:

The ETH/USD pair has bounced from the demand zone and is heading higher towards the nearest technical resistance located at $1,358. On the other hand, the next target for bears is seen at the level of $1,100, $1,000 and $990, which means the low from 22th September located at $1,220 should be broken as the down trend will continue. The intraday technical support is seen at the level of $1,281, $1,267 and $1,255 and the technical resistance is located at $1,358 and $1,407.

Weekly Pivot Points:

WR3 - $1,360

WR2 - $1,320

WR1 - $1,306

Weekly Pivot - $1,283

WS1 - $1,268

WS2 - $1,245

WS3 - $1,206

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 at the level of $2,029. The key technical support for bulls is seen at $1,281 as a part of the demand zone located between the levels of $1,252 - $1,295. If the down move will be extended, then the next target for bears is located at the level of $1,000.