FX.co ★ Technical Analysis of ETH/USD for June 19, 2023

Crypto Industry News:

Elon Musk, the billionaire and head of Tesla, has denied allegations of possession of Dogecoin. A lawsuit is currently underway for market manipulation and stock fraud related to this cryptocurrency.

The founder and CEO of Tesla, and for a short period also the CEO of Twitter, is currently facing a $258 billion lawsuit for allegedly creating a DOGE-based pyramid scheme. The prosecutor claims that Musk was part of a shadowy operation supporting this cryptocurrency.

Musk is accused of selling 1.4 billion DOGE worth over $124 million. Records indicate that two different wallets - allegedly owned by the billionaire - sold these tokens.

Musk's lawyer, Alex Shapiro, denied the allegations. According to the letter obtained by the media, "There is no basis to claim that the said wallets belong to Musk," it reads.

The DOGE group of investors had already changed the lawsuit, accusing Musk of manipulative practices that pumped up the price of the token. Specifically - according to the documents - it is about "transparent manipulation of the cryptocurrency market." It is alleged that Musk took advantage of his impressive number of Twitter followers and an appearance on NBC's "Saturday Night Live".

Musk, who describes himself as "Dogefather" and "CEO of Dogecoin", has never hidden his affinity for the cryptocurrency. He has repeatedly used social media to support the token, resulting in his latest run-ins with the law.

Technical Market Outlook:

The ETH/USD pair has made a new swing low at the level of $1,620 and tested the technical support located at $1,616. The bounce from the support was pretty good as the bulls broke above the level of $1,718 and made a new local high at the level o $1,759. Since then the market keeps consolidating around this level and the level of $1,718 is being used as the intraday technical support. The strong and positive momentum on the H4 time frame chart supports the bullish outlook for ETH.

Weekly Pivot Points:

WR3 - $1,747

WR2 - $1,733

WR1 - $1,724

Weekly Pivot - $1,719

WS1 - $1,713

WS2 - $1,704

WS3 - $1,690

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.