FX.co ★ Technical Analysis of ETH/USD for February 21, 2023

Crypto Industry News:

According to Cameron Winklevoss, an American investor and co-founder of the Gemini cryptocurrency exchange, the next cryptocurrency boom will start in Asia.

His comments come amid increased enforcement actions and looming crackdowns from U.S. regulators, including the Securities and Exchange Commission.

"My working thesis is that the next bull run will start in the East. It will be a humbling reminder that cryptocurrencies are a global asset class and that the West, and indeed the United States, has always had only two options: embrace them or fall behind," Winklevoss wrote on Twitter.

According to Chainalysis, Central & Southern Asia and Oceania (CSAO) was the third largest cryptocurrency market in its 2022 index. Citizens of these areas held $932 billion worth of cryptocurrency between July 2021 and June 2022.

CSAO was also home to seven of the top 20 countries in the 2022 index: Vietnam (1), Philippines (2), India (4), Pakistan (6), Thailand (8), Nepal (16) and Indonesia (20).

In his Twitter thread, Winklevoss said that governments that don't offer clear rules and candid guidance on cryptocurrencies will be "left behind" and miss "the greatest period of growth since the advent of the commercial internet."

Technical Market Outlook:

The Ethereum market had made a local high at the level of $1,721 and is consolidating the recent gains close to the last week highs again. The intraday technical support is seen at $1,617 (100 MA) and $1,579 (50 MA). 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 - $1,774

WR2 - $1,726

WR1 - $1,709

Weekly Pivot - $1,678

WS1 - $1,661

WS2 - $1,630

WS3 - $1,581

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.