FX.co ★ Technical Analysis of ETH/USD for May 29, 2023

Crypto Industry News:

Gold will "fail" when people realize that Bitcoin offers better properties than the yellow metal, according to billionaire Michael Saylor, executive chairman and co-founder of MicroStrategy, a publicly traded company that owns 140,000 Bitcoins.

"Bitcoin is the digital, synthetic successor to gold," said Saylor Michelle Makori of Kitco News at the Bitcoin 2023 conference in Miami, Florida.

"Bitcoin will appreciate at a faster rate. Gold will fail. Eventually people will sell all their gold and buy Bitcoin."

MicroStrategy started buying Bitcoin in August 2020. According to Saylor, it paid off a lot, given the rise in the price of Bitcoin since then.

"The S&P is up maybe 25 percent, the NASDAQ is up a dozen or so, gold is up one percent, silver is down, and bonds are down even more."

Saylor, a longtime Bitcoin HODLER, claimed that Bitcoin was successful as a hedge against inflation and as a store of value. He first started investing in Bitcoin due to its limited supply and decentralized blockchain network, which makes self-service cheaper than other assets without counterparty risk.

"Bitcoin is faster, smarter and stronger than gold, with all the benefits of gold. It is a bearer instrument with no counterparty risk, which is a non-state store of value," said Saylor. "Gold is expensive to maintain, centralized, people can steal it from you, and gold miners keep degrading it by mining more gold."

Technical Market Outlook:

The ETH/USD pair has broken below the short-term technical resistance located at the level of $1,865 and currently is approaching the next target seen at $1,935. The local low was made at the level of $1,893, but the market is still under the bullish pressure. The momentum is strong and positive on the H4 time-frame chart, however, the bulls hit the extremely overbought level, so a pull-back is welcome. The bigger time frame trend remains down.

Weekly Pivot Points:

WR3 - $1,848

WR2 - $1,826

WR1 - $1,817

Weekly Pivot - $1,803

WS1 - $1,795

WS2 - $1,780

WS3 - $1,758

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.