FX.co ★ Technical Analysis of ETH/USD for May 12, 2023

Crypto Industry News:

Real estate remains the preferred long-term investment asset, according to the latest Gallup poll. However, they are falling significantly from last year's record high of 45% to 34% in 2023.

"Higher interest rates over the past year have cooled the housing market, dampening consumer enthusiasm for real estate as an investment," the survey said.

The view that gold is the best long-term investment rose from 15% in 2022 to 26% - the highest level since 2012. Gold overtook stocks as the second most preferred investment and moved closer to number one. Already more than a quarter of Americans see gold as the best long-term investment.

"Gold tends to be the beneficiary when confidence levels in both real estate and equities decline. This most often happens in times of economic recession or uncertainty, as it happened during the Great Recession and it is happening again today.

The acceptance of the crypto space after the fall of FTX fell to 4%. Last year, 8% of Americans considered the cryptocurrency market to be the best investment, putting it ahead of bonds.

Crypto winter, followed by the SEC's constant struggle with the crypto market, strongly weakens the quotations of the new investment space on stock exchanges and in the eyes of investors.

Bitcoin is in a stagnant exchange rate with a tendency to lose value. In which he is strongly helped by the US government by throwing tons of BTC for sale.

Technical Market Outlook:

The ETH/USD pair broken below the technical support seen at $1,786 as the bears are in full control of the market. The next target for bears is seen at $1,687 and the level of $1,787 will now act as the intraday technical resistance. The weak and negative momentum on H4 time frame chart supports the short-term bearish outlook for ETH, however, the market conditions are now extremely oversold.

Weekly Pivot Points:

WR3 - $2,016

WR2 - $1,941

WR1 - $1,902

Weekly Pivot - $1,871

WS1 - $1,829

WS2 - $1,798

WS3 - $1,726

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.