FX.co ★ Technical Analysis of ETH/USD for July 5, 2023

Crypto Industry News:

The latest research shows that almost all countries are intensifying work on the creation of central bank digital currency (CBDC) systems, and some of them are close to completing this work. According to a report by the Atlantic Council think tank, based in Washington, 130 countries, which together generate 98% of the world's GDP, are exploring the possibility of introducing it. This is a huge increase compared to May 2020, when only 35 countries were considering implementing a CBDC.

The report shows that a record number of 64 countries are already at an advanced stage of exploring the CBDC system. They have implemented initial development, are conducting pilot tests or are even in the commissioning phase.

Among them are 19 out of 20 G20 countries. Interestingly, the US seems to be the exception to this rule, with retail CBDC adoption progressing. This one seems to be stuck there at a dead end right now.

Technical Market Outlook:

The bulls are clearly in control of the ETH market and they resumed the up trend again and made the last high at the level of $1,974. The market is approaching the key technical support located at the level of $1,930, so in a case of a bounce from this level the next target for bulls is seen at the level of $2,020. The momentum turned into positive on the RSI (14) indicator, so the short-term outlook for ETH remains bullish, however the market conditions on the lower time frames are now extremely overbought. The short-term technical support is seen at the level of $1,777.

Weekly Pivot Points:

WR3 - $2,044

WR2 - $1,999

WR1 - $1,980

Weekly Pivot - $1,954

WS1 - $1,935

WS2 - $1,909

WS3 - $1,854

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.