FX.co ★ Technical Analysis of ETH/USD for June 13, 2023

Crypto Industry News:

The general adoption of cryptocurrencies, which is not only hampered by recession and macro uncertainty, is also uphill for other reasons. Banks are increasingly critical of digital assets. Many traditional institutions refuse to mediate transfers and do not want to be associated with cryptocurrencies. Nor with cryptocurrency exchanges. Not so long ago, the whole of Wall Street was terrified that the two banks that started the downward spiral in the banking sector had a lot in common with crypto.

Both Silvergate Capital and Signature Bank were known for their optimistic outlook on the industry. The sentiment around them weakened when the market began to speculate about potential problems caused by the collapse of crypto-exchanges and the general apathy of the sector. The speculation was enough to spiral into an outflow of 'just in case' deposits. After all, how are customers supposed to know if 'the bank has dead bodies in the cupboard'? Since then, institutions have treated cryptocurrencies as if they had leprosy. They also do not want to expose themselves to multimillion-dollar regulatory fines.

In the absence of banks, new players will try to fill the gap by mediating between crypto and the world of finance. We are talking about regional lenders and fintech companies. For example, in the USA, Customers Bancorp is growing in popularity. The bank launched a real-time platform to support transfer settlement in the US for cryptocurrency transactions. Other US entities that provide services to crypto companies include Western Alliance, Cross River Bank and Axos Financial. These banks agree to increased checks, but not for free - they have raised their price list for the crypto sector.

Technical Market Outlook:

The ETH/USD pair has been seen testing the technical support located at the level of $1,718 many times, but the bulls are unable to bounce from the extremely oversold market conditions on the H4 time frame chart. The momentum is still weak and negative. The intraday technical resistance is seen at the level of $1,782 and only a sustained breakout above this level would change the outlook to more bullish. Otherwise, the next target for bears is seen at the level of $1,686.

Weekly Pivot Points:

WR3 - $1,807

WR2 - $1,771

WR1 - $1,754

Weekly Pivot - $1,736

WS1 - $1,719

WS2 - $1,701

WS3 - $1,666

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.