FX.co ★ Technical Analysis of ETH/USD for July 25, 2023

Crypto Industry News:

The creator of Ethereum, Vitalik Buterin, shared his thoughts on Worldcoin (WLD) - an innovative project that has taken the lead in the crypto scene. Created by the creators of OpenAI, the company behind ChatGPT, this initiative has already garnered significant attention for its remarkable technology.

Worldcoin is a decentralized database that aims to verify users' identities through iris scanning. They intend to do this through a device called the "Orb". Worldcoin plans to produce 1,500 of these devices and deploy them in 35 different cities to meet "global demand for World ID."

However, Worldcoin is not without controversy. Vitalik Buterin, the creator of Ethereum, expressed his concerns about potential privacy risks. In his recent blog post, he lists four main risks associated with Worldcoin.

The first of the risks Buterin identified concerns privacy. In his opinion, anyone who scans the iris can then check whether the person has a World ID. In addition, other additional information may be disclosed.

The second risk, the billionaire notes, is availability. Unless Orb devices are widely available around the world, World ID is unlikely to be available to most people.

Then, the creator of Ethereum points to the risks of centralization and security. In his opinion, there is a likelihood that a special mechanism (the so-called backdoor) will be added to the Worldcoin system, which the Worldcoin Foundation could use for its purposes.

Additionally, Buterin raises the issue of phone security. It points to the possibility that these could be hacked and users might be forced to do an iris scan while providing a public key that belongs to someone else. There is also a risk that 3D printing can create "fake people" who will obtain a World ID.

Buterin notes that the threats are really serious. All this makes Worldcoin a project worth watching, but - at least in his opinion - with great caution.

Technical Market Outlook:

The ETH/USD pair has been seen moving lower as the bearish pressure increase. The bounces are shallow and weak, bulls are not able to test the intraday technical resistance located at the level of $1,851. The next target for bears is seen at the level of $1,827 which is the key short-term technical support level. Any violation of this level would open the road towards the next target located at $1,777. The weak and negative momentum on the H4 time frame chart supports the short-term bearish outlook for ETH.

Weekly Pivot Points:

WR3 - $1,927

WR2 - $1,899

WR1 - $1,883

Weekly Pivot - $1,872

WS1 - $1,856

WS2 - $1,844

WS3 - $1,817

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.