FX.co ★ Technical Analysis of ETH/USD for July 28, 2023

Crypto Industry News:

Kuwait announces a complete ban on investing in cryptocurrencies. The country thus joined 10 other countries in the Middle East and North Africa that do not allow investments in digital assets.

It turns out that this ban is not just a suggestion, because there are severe penalties for breaking the new law. So will the appearance of the hugely announced Islamic Coin change the approach of Middle Eastern countries to cryptocurrencies?

A complete ban on investing, mining and using cryptocurrencies was issued by the Central Bank of Kuwait and the Ministry of Commerce. It is worth adding that this ban is a response to the recommendations of the FATF, i.e. the global supervisory body for anti-money laundering.

Those caught breaking the rules may be subject to financial penalties or imprisonment. Interestingly, similar restrictions on the total or partial ban on the use of cryptocurrencies are already in place in 10 countries in the Middle East and North Africa. These countries are: Saudi Arabia, Algeria, Egypt, Iran, Iraq, Jordan, Turkey, Tunisia and Morocco.

The ban on cryptocurrencies in Islamic countries is clearly related to the fact that digital assets (those based on gold) are classified as "ribawi". This name refers to goods that cannot be traded speculatively. The Koran forbids trading in such assets to protect the faithful from usury.

Technical Market Outlook:

The ETH/USD pair has bounced from the technical support seen at the level of $1,833 and is currently trading in the middle of the local trading range. Moreover, the bulls had managed to break above the short-term trend line resistance and hit the 100 MA at the level of $1,886 (local high). On the other hand, 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.