FX.co ★ Technical Analysis of ETH/USD for November 10, 2022

Crypto Industry News:

Facebook's parent company Meta will begin cutting 11,000 of its 87,000 employees on Wednesday morning, the company said on Tuesday. Meta CEO Mark Zuckerberg released a statement explaining why the company is making the cut and what went wrong in the development of the tech giant and social media:

"We are basically making all of these changes for two reasons," he wrote. "Our revenue forecasts are lower than expected earlier this year, and we want to make sure we're operating efficiently with both Family of Apps and Reality Labs."

Zuckerberg said he believed the prediction that the massive pandemic-induced rise in e-commerce would represent a lasting shift in consumer behavior, and invested the company's resources accordingly.

"Unfortunately, it did not go as expected," he said. "Not only has online trading failed to return to previous trends, but the macroeconomic slowdown, increased competition and loss of ad signal have resulted in our revenues being much lower than expected." I made a mistake and I take responsibility for it.

The company announced that the layoffs will affect every organization in Family of Apps and Reality Labs, but recruiting staff will be "disproportionately affected" by the company's extended job freeze, and that business teams will also be "cut more significantly."

In addition to the layoffs, the largest in the company's history, Zuckerberg outlined several other austerity measures, including reducing budgets and benefits and reducing the company's presence in the real estate market.

Zuckerberg said the company will focus its resources on "fewer high priority growth areas," including the AI engine, advertising and business platforms.

The meta lost more than $ 80 billion in market value in October after it reported a profit of $ 4.4 billion, down 52 percent in the third quarter. On February 3, the company saw its biggest one-day slump in U.S. history, shedding $ 230 billion in market value after exceeding targets for Q4 2021.

But despite investors and tech experts pointing to the company's exaggerated virtual reality hopes and investment as the main reason behind Meta's underperformance, Zuckerberg listed his "long-term meta-universe vision" among his top priorities for the future.

Technical Market Outlook:

The ETH/USD pair has made a new local low at the level of $1,077in and immediately started a dynamic bounce towards the level of $1,191. Nevertheless, the bearish pressure is still high and the next target for bears is seen at the level of $886 (yearly low's). The momentum is weak and negative already on the H4 time frame chart, so the down move might continue lower. The nearest technical resistance is seen at the level of $1,191 - $1,219 (old demand zone, now will act as the supply zone). In order to extend the recent impressive rally and reverse the trend to the up trend the market must break above the last swing high seen at $1,785.

Weekly Pivot Points:

WR3 - $1,635

WR2 - $1,605

WR1 - $1,587

Weekly Pivot - $1,575

WS1 - $1,557

WS2 - $1,544

WS3 - $1,514

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.