FX.co ★ Technical Analysis of ETH/USD for August 16, 2023

Crypto Industry News:

Made famous by the book 'The Big Short' and the film of the same name, speculator Michael Burry was unable to repeat his 2008 spectacular success for 14 years. Back then, he made a fortune betting on the 2008 sub-prime crisis. Now it's back on the market with powerful shorts.

Fund manager Scion Asset Management purchased put options worth USD 739 million by betting on the declines of the Invesco Nasdaq100 ETF and twin options targeting the SPDR S&P 500 ETF. Recall - put options give the right to sell at a fixed price in the future. They are usually used to take a short position or to reduce portfolio risk (hedging).

US regulations do not require public disclosure of short selling positioning in the options market, their purchase prices or maturity dates. Therefore, it is uncertain how Burry has fared in the derivatives market in recent years. Throughout this time, it was also unclear whether any put options were held. Or whether Burry used them as hedge bullish positions on other instruments. At the same time, Burry continues to believe in the growth of the Japanese stock market.

Technical Market Outlook:

The ETH/USD pair has made a new local high at the level of $1,874 and then pulled-back towards more than 38% towards the moving average located at the level of $1,841. The next target for bears is the 61% retracement level located at $1,828. The next intraday technical resistance is seen at the level of $1,888 and $1,903. The recent breakout from the narrow consolidation zone towards the level of $1,800 in progress.

Weekly Pivot Points:

WR3 - $1,874

WR2 - $1,857

WR1 - $1,850

Weekly Pivot - $1,841

WS1 - $1,834

WS2 - $1,824

WS3 - $1,808

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.