FX.co ★ Technical Analysis of ETH/USD for July 11, 2023

Crypto Industry News:

Failed cryptocurrency lender Celsius Network, once non-ironically defining itself as a viable alternative to unsafe traditional banks, recently received court approval to convert its altcoin holdings into more specific cryptocurrencies, namely Bitcoin ($BTC) and Ethereum ($ETH). The decision is part of Celsius's ongoing restructuring plan to address the liquidity concerns of participating parties and underpin its declining financial position.

Court documents seen by the international press indicate that Celsius has already taken steps to transfer some of its altcoins to market maker Wintermute and stablecoin issuer Paxos. By turning altcoins into more liquid assets, the cryptocurrency lender is desperately trying to improve its ability to liquidate capital and raise more capital, potentially enabling it to meet existing financial obligations and restore its reputation in the eyes of lenders and creditors.

The exact valuation of the altcoins owned by Celsius is hard to estimate, so interested market watchers will have to get by. At the end of March, the bankrupt had a diversified portfolio of over $2 billion, including cryptocurrencies such as BTC, ETH, stETH (stakes Ethereum - editorial note) and a mix of both more liquid and less liquid altcoins. Without clarity on the exact valuation, Celsius's true financial situation remains unclear.

Technical Market Outlook:

The ETH/USD pair has reversed from the highs seen at the level of $1,974, broke below the 100 and 50 moving averages and is currently approaching the key short term technical support seen at the level of $1,816. If this level is violated, then the next target for bulls is seen at $1,759. So far the ETH has been trading inside a narrow range located between the levels of $1,843 - $1,877 with one failed attempt to rally higher, so the ETH market participants await the fundamental trigger to truly break out from the consolidation.

Weekly Pivot Points:

WR3 - $1,897

WR2 - $1,877

WR1 - $1,867

Weekly Pivot - $1,856

WS1 - $1,847

WS2 - $1,835

WS3 - $1,822

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.