FX.co ★ Technical Analysis of ETH/USD for December 23, 2022

Crypto Industry News:

The world of cryptocurrency has been informed that the court, specifically the US justice of the peace, Gabriel Gorenstein, approved the release of Sam Bankman-Fried on bail of $ 250 million. Samuel will be placed under house arrest and will live with his parents in their home in California.

According to the information, the possibility of bail and being under house arrest was a condition of Sam's voluntary extradition, which he made a deal with federal prosecutors.

On release, the SBF agrees to abide by 'strict' rules, namely not being able to hold a passport (very surprising), agreeing to undergo regular mental health checks and must wear an electronic monitoring device. What's more, he will also not be able to open new lines of credit during this time.

Following Samuel's appearance in a Manhattan court yesterday, where he was charged with one of the largest financial frauds in US history, the SBF pleaded not guilty and completely denied all charges against him.

Technical Market Outlook:

The Ethereum cryptocurrency has retraced 38% of the last wave down on the H4 time frame chart and is currently trading close to the level of $1,227. The 100 SMA is seen at the level of $1,246, so bulls need to break through this level in order to continue the bounce towards the technical resistance seen at $1,278. The intraday volatility is very limited. The key short-term technical support is seen at the level of $1,150. On the higher time frame, like weekly, there is a clear test of the 50 WMA located at the level of $1,080, so any breakout below the moving average and a weekly candle close below moving average will be considered as another indication of the down trend continuation.

Weekly Pivot Points:

WR3 - $1,222

WR2 - $1,201

WR1 - $1,190

Weekly Pivot - $1,181

WS1 - $1,169

WS2 - $1,160

WS3 - $1,139

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 at $1,281 was broken already and the new yearly low was established at $1,074. If the down move will be extended, then the next target for bears is located at the level of $1,000.