FX.co ★ Technical Analysis of ETH/USD for June 6, 2023

Crypto Industry News:

Terraform Labs co-founder Do Kwon is out of jail on bail. The court dismissed the appeal of the prosecutor's office, which wanted to block his release.

According to the official statement of the Supreme Court in Podgorica, the appeal of the National Prosecutor's Office against the earlier agreement to release Kwon on bail was dismissed. As a result, the former CEO is released. Former CFO Han Chang-Joon was also released with him. Both will await further court proceedings under house arrest.

The bail amounted to as much as 400,000 euros ($436,000). In addition, Kwon and Chang-Joon are subject to strict release conditions - they are not allowed to leave their temporary residence. The duo will be closely monitored by the local police. In the event of leaving the apartment where they will be staying, or in case of violation of supervision measures, the deposit is forfeited.

Kwon and Chang-Joon were arrested in Montenegro in March 2023. Everything took place at the airport in the capital of the country. They were trying to board the plane they wanted to fly to Dubai. The reason for their arrest was that they were using allegedly forged documents. It was not just an attempt to hide their identities, but also that their original passports were canceled by the South Korean authorities in October 2022.

Technical Market Outlook:

The Ethereum market is still under the bearish pressure as the recent sell-off resulted in a test of the short-term trend line suppot around the level of $1,783. The bears had broken below all of the Fibonacci retreacements, so now the next target for them is seen at the level of $1,761. The market conditions are extremely oversold, so there is a chance for a bounce towards the technical resistance seen at $1,839. Only a sustained breakout above this line would change the outlook to more bullish.

Weekly Pivot Points:

WR3 - $1,962

WR2 - $1,919

WR1 - $1,894

Weekly Pivot - $1,877

WS1 - $1,851

WS2 - $1,834

WS3 - $1,791

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.