FX.co ★ Technical Analysis of ETH/USD for August 22, 2023

Crypto Industry News:

With the unprecedented growth of adoption of the cryptocurrency industry around the world, the global financial giants are taking bolder steps to become part of this revolution. They are attracted by the growing market capitalization that cryptocurrencies enjoy, coupled with the inherent advantages of blockchain technology, such as transparency and security. As the boundaries between traditional banking and the new financial reality are gradually blurring, let us turn our attention to the banks whose ships are already in or entering the waters of the new era.

Navigating the regulatory maze remains a major hurdle and worry for institutional clients, especially those based in the US where they have to contend with the US market regulator, the SEC.

While regulations are constantly evolving, conservative institutions are on their guard. The integration of blockchain with traditional banking infrastructure requires meticulous planning, ensuring that revitalized banking systems remain stable and secure.

Nevertheless, we are all aware that we are preparing for a seismic shift in global finance. Even central banks, traditionally skeptical of novelties such as cryptocurrencies, are starting to release the first versions of their own digital currencies (CBDC).

Technical Market Outlook:

The ETH/USD pair has been seen moving sideways in a narrow range as the bulls keep trying to bounce from the lows. The current local bounce high was made at the level of $1,693, which is just below the technical resistance located at $1,707. The level of $1,545 will now act as the technical support, but the key technical support is seen at the level of $1,620. The narrow range has been established between the levels of $1,690 - $1,640. Please notice, the current market conditions are extremely oversold on H4 and Daily time frame chart, so the bulls are free to bounce even towards the technical resistance located at $1,803.

Weekly Pivot Points:

WR3 - $1,710

WR2 - $1,692

WR1 - $1,681

Weekly Pivot - $1,674

WS1 - $1,663

WS2 - $1,656

WS3 - $1,638

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.