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

Crypto Industry News:

Recently, we have become accustomed to negating almost everything related to cryptocurrencies by US regulators. Fortunately, state law allows you to go your own way in this regard, and Texas intends to take advantage of that. Texas is the first state to issue its own gold-backed digital currency.

The proposed solution in the form of an act presented by Senator Bryan Huges and Marek Dorazio introduces the establishment of the position of public finance controller. He will be responsible for issuing the digital currency. It will be fully backed by gold and will be fully redeemable for cash or gold.

The proposed bill does not place limits on the amount of gold-backed digital currency that Texans can buy. Immediately after purchase, the controller will need to:

"Purchase a fractional ounce of gold equal to the number of digital currency units issued to the purchaser and issue to the purchaser a number of digital currency units equal to the amount of gold that the controller purchases with the money received from the purchaser."

When a person with a digital currency wants to exchange it for cash, all they have to do is present it to the controller or designated agent. He will then sell the gold held in the escrow account in an amount equal to the redemption amount and transfer the funds for the redemption. These funds will be less any fees.

Technical Market Outlook:

The ETH/USD pair has been continuing the pull-back towards as the market is coming off the extremely overbought conditions on the H4 time frame chart. The level of $1,858, $1,845 and $1,832 will now act as the support for bulls, so please pay attention to this level during the local pull-back. The next target for bulls is seen at the level of $2,000. The strong and positive momentum on the H4 time frame chart support the short-term bullish outlook for Bitcoin.

Weekly Pivot Points:

WR3 - $1,842

WR2 - $1,809

WR1 - $1,792

Weekly Pivot - $1,776

WS1 - $1,759

WS2 - $1,743

WS3 - $1,710

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. This is the key level for bulls, so it needs to be broken in order to continue the up trend. The key technical support is seen at $1,368, so as long as the market trades above this level, the outlook remains bullish.