FX.co ★ Technical Analysis of ETH/USD for August 30, 2023

Crypto Industry News:

The news of Grayscale's victory with the SEC in the Bitcoin EFT lawsuit has heated up the cryptocurrency community. The BTC and ETH exchange rate increased by 6% in just one hour.

Will the information coming from overseas cause a long-term Bitcoin and altcoin boom? Today, the stock market is dominated by the bull. Grayscale's win shows the SEC and Gary Gensler have plenty to think about over the next few months.

Grayscale's victory is not only practical, but above all symbolic. It is worth recalling what the dispute between Grayscale and the US Securities and Exchange Commission was really about. A year ago, Grayscale filed an appeal against the SEC for rejecting its application to convert the Bitcoin Trust (GBTC) into a spot ETF for Bitcoin.

A lot has changed over the course of the year, and the most notable fact was the application for an ETF by BlackRock. As early as June, analysts predicted that Grayscale had about a 70% chance of winning in light of the events so far. These predictions turned out to be correct. Grayscale CEO Michael Sonnenshein announced the victory on August 29 at his X.

Technical Market Outlook:

The ETH/USD pair has spiked to the upside and made a new local high at the level of $1,744. The level of $1,698 had been broken and now will act as the technical support. The momentum has hit the extremely overbought conditions on the H4 time frame chart, so now it is time for a pull-back, however, the short-term outlook remains bullish. The next target for bulls is seen at the level of $1,800 (key short-term technical resistance).

Weekly Pivot Points:

WR3 - $1,689

WR2 - $1,666

WR1 - $1,653

Weekly Pivot - $1,643

WS1 - $1,630

WS2 - $1,620

WS3 - $1,579

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.