FX.co ★ Technical Analysis of ETH/USD for February 7, 2023

Crypto Industry News:

It has been known for a long time that the police and services often lag behind criminals when it comes to using new technologies.

It is possible that because of the above, Interpol is already looking at the metaverse. Jurgen Stock, secretary general of Interpol, believes that the organization must be prepared to act in the event of crimes that take place in the digital world.

In a television interview, Stock stated that "criminals are sophisticated and professional at adapting quickly to any new technological tool."

"We have to respond accordingly. Sometimes legislators, police and our societies are a bit behind," Stock admitted.

It turns out that the metaverse is already full of people breaking the law. There are harassment and ransomware attacks. In addition to money laundering and financial fraud.

According to Dr. Madan Oberoi, Interpol's Executive Director for Technology and Innovation, one of the biggest issues facing the organization today, however, is determining whether any activity in the metaverse constitutes a crime:

"If you look at the definitions of these crimes in physical space and try to apply them to the metaverse, there's a problem. We don't know if we can call them a crime, but these threats definitely exist, so these issues haven't been resolved yet."

For Oberoi, one thing is certain: to oversee the metaverse, Interpol must have a presence on the metaverse platforms. Therefore, the organization already has its place in the virtual world, which was officially opened at the 90th General Assembly in New Delhi in October.

Technical Market Outlook:

The ETH/USD pair made a new local high at the level of $1,695 and then market reversed sharply lower. The Bearish Engulfing candlestick pattern was made at the H4 time frame chart, so the outlook still remains bearish. The nearest technical support is seen at $1,525 and $1,487. The intraday technical support is seen at $1,603 and the key technical support is located at $1,350 and only clear and sustained breakout below this level would change the short-term outlook to bearish. Please keep an eye on the $1,487 technical support as any violation of this level would likely extend the drop towards $1,345, but in order to do this, the volatility must increase significantly. The next target for bulls is seen at the level of $1,788 (September 2022 high).

Weekly Pivot Points:

WR3 - $1,630

WR2 - $1,625

WR1 - $1,623

Weekly Pivot - $1,620

WS1 - $1,618

WS2 - $1,614

WS3 - $1,609

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 2022 at the level of $2,029. The key technical support for bulls at $1,281 was broken already and the new swing 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.