FX.co ★ Technical Analysis of ETH/USD for September 12, 2023

Crypto Industry News:

India is working on a regulatory framework for cryptocurrencies based on recommendations from the International Monetary Fund (IMF) and the Financial Stability Board (FSB). It is possible that these recommendations will contribute to the adoption of legislation in India within the next six months. Sidharth Sogani, CEO of Crebaco, a company that works with government agencies and ministries, says the Indian government is working on a five-point legislative framework for cryptocurrencies. Officials in India believe that banning cryptocurrencies is not the way to go. Therefore, it is better to use the IMF-FSB recommendations, which constitute a good framework for deciding on further action.

The 5-point bill would focus on issues such as:

1.Set up advanced Know Your Customer (KYC) for crypto companies, which includes tax compliance and anti-money laundering standards.

2.Crypto platforms will be required to provide real-time proof of reserve audits to regulators.

3. Taking into account tax policy in other countries.

4.Cryptocurrency exchanges can be given the same status as authorized dealers (like banks) as per the guidelines of the Reserve Bank of India (RBI).

5. Key positions may be mandatory, e.g. money laundering reporting specialist for crypto platforms.

India currently does not have any specific regulations regarding cryptocurrencies, although in 2022 the country imposed a 30% tax on cryptocurrency profits.

Technical Market Outlook:

The ETH/USD pair has made a new local low at the level of $1,530 and then immediately bounced back towards the old narrow range. The momentum is still weak and negative, so the short-term outlook for ETH remains bearish. The intraday technical resistance is seen at the level of $1,601 and $1,623 and the next technical support levels are located at $1,525 and $1,369.

Weekly Pivot Points:

WR3 - $1,643

WR2 - $1,627

WR1 - $1,620

Weekly Pivot - $1,610

WS1 - $1,603

WS2 - $1,593

WS3 - $1,577

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.