FX.co ★ Technical Analysis of ETH/USD for February 15, 2023

Crypto Industry News:

Coinbase has been in the spotlight of the crypto world over the past few days as the U.S. Securities and Exchange Commission (SEC) investigates Coinbase's biggest competitor. The suspicions against the Kraken were confirmed and bore fruit in the form of a fine. For this reason, now Coinbase is in the spotlight and FUD affects the mood of Coinabse investors and customers.

However, according to Coinbase, staking is not a violation of the Securities Act or even the Howey test. More importantly, Coinbase stated that forced staking under the Securities Act will be detrimental to users. This form of regulation through enforcement could push US users into unregulated offshore markets.

Although new developments are taking place ahead of the Shanghai update, Ethereum validators and the ETH network remain undeterred. And according to Staking Rewards, so far the number of validators on the Ethereum network continues to grow. More specifically, the ETH network has seen an increase of 3.5% in the last 30 days.

Growing revenue generated is one of the reasons why the number of validators continues to grow despite the negative press around staking. Only in the last month, validators generated an increase in revenues by 32.81%. Additionally, the overall ETH rate also increased. Currently, around 14% of all ETH is staked, and this number may change after the Shanghai update. Most ETH is staked through Lido and other centralized exchanges.

Technical Market Outlook:

The key technical support on ETH/USD pair, which is located at $1,487 was tested by bears already and now the market is trying to bounce. The bulls had broken above the local trend line (orange line on the chart) and continue to move higher towards the 50 MA ($1,576). Only a clear and sustained breakout below the level of $1,487 would change the short-term outlook to bearish, so please keep an eye on the $1,487 technical support. Any violation of this level would likely extend the drop towards $1,345, but in order to do this, the volatility must increase significantly.

Weekly Pivot Points:

WR3 - $1,569

WR2 - $1,541

WR1 - $1,532

Weekly Pivot - $1,513

WS1 - $1,503

WS2 - $1,484

WS3 - $1,456

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.