FX.co ★ Technical Analysis of ETH/USD for September 19, 2023

Crypto Industry News:

The Hong Kong Monetary Authority (HKMA) has issued a warning to users that cryptocurrency companies that present themselves as banks and use banking terminology may be violating the region's banking laws.

In a press release, the HKMA said the use of certain banking terms may be misleading to the public, causing users to think that cryptocurrency companies are authorized banks in Hong Kong. However, the central bank stressed that under the region's banking law, only licensed institutions are allowed to conduct banking activities or accept deposits in Hong Kong.

The central bank also warned that companies describing themselves with terms such as "crypto bank", "digital asset bank" and "crypto asset bank" or claiming to offer banking services or bank accounts may be breaking the law.

According to the HKMA, outside authorized institutions, it is illegal for individuals or companies to use the word "bank" in the name or descriptions of their businesses. Moreover, accepting deposits without the appropriate license is also a violation of the law.

Technical Market Outlook:

The ETH/USD pair has made a local high at the level of $1,668, so the short-term trend line resistance at the H4 time frame chart was broken. Currently, the market hovers around the 100 MA located at the level of $1,632 after the full reversal was done. The momentum broken to the positive territory as well, so the bounce can continue higher towards the level of $1,774. The intraday technical resistance is seen at the level of $1,668 and the nearest technical support levels are located at $1,630 and $1,606.

Weekly Pivot Points:

WR3 - $1,683

WR2 - $1,653

WR1 - $1,641

Weekly Pivot - $1,622

WS1 - $1,610

WS2 - $1,591

WS3 - $1,560

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.