FX.co ★ Technical Analysis of ETH/USD for December 30, 2022

Crypto Industry News:

Microstrategy currently holds approximately 132,500 bitcoins. In December, the company bought another batch of cryptocurrencies. At the same time, however, it turned out that it had sold some digital assets for the first time.

Michael Saylor, founder and CEO of the company, tweeted:

"MicroStrategy has increased its bitcoin holdings by approximately 2,500 BTC. As of 12/27/22, MicroStrategy has approximately 132,500 bitcoins purchased for approximately $4.03 billion at an average price of approximately $30,397 per bitcoin."

In its filing with the U.S. Securities and Exchange Commission (SEC), Microstrategy explained that 2,500 coins were acquired between November 1 and December 24 by its subsidiary Macrostrategy.

The subsidiary purchased approximately 2,395 BTC at an average price of $17,871 per coin. This happened between November 1 and December 21. She then sold around 704 BTC at $16,776 per BTC (this happened on December 22). On December 24, she bought around 810 BTC at $16,845 a coin.

It is worth noting that the company sold a batch of BTC for the first time. However, it is not about exiting the market, but about "generating tax benefits". Everything is to be based on "current federal income tax rules."

Michael Saylor, the company's founder, said in an interview last week that "the most positive thing this year" is that bitcoin has been recognized as an "institutional grade digital asset." Added to this is "the clarity that there is one cryptocurrency asset that is a digital commodity."

He noted that both the SEC chairman and the chairman of the Commodity Futures Trading Commission (CFTC) have confirmed that bitcoin is a commodity.

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 this level, consolidating the recent gains and testing the intraday supports seen at $1,180. 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., nevertheless the key short-term technical support is seen at the level of $1,150 and if the level of $1,183 is broken, this will be the next target for bears.

Weekly Pivot Points:

WR3 - $1,258

WR2 - $1,240

WR1 - $1,230

Weekly Pivot - $1,221

WS1 - $1,212

WS2 - $1,201

WS3 - $1,184

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. 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. If the down move will be extended, then the next target for bears is located at the level of $1,000.