FX.co ★ Technical Analysis of ETH/USD for September 21, 2023

Crypto Industry News:

After Twitter's loud but almost imperceptible rebranding to X, new changes are on the horizon. Elon Musk admitted in one of his recent interviews that the natural development of X will be the introduction of paid access for all users.

According to the creator of Spacex, this is the only way to eliminate the army of bot accounts that plague the old Twitter. Users were extremely critical of the multi-billionaire's news and say it will be a double-edged sword.

Even before Elon Musk purchased Twitter, it was known that bot accounts were a big problem for the platform. Such accounts are managed by specific people and perform specific actions at their request. Bot accounts became famous in connection with the US elections. It is worth adding that X is not the only social media platform that faces this problem. Fake accounts are also a plague on Facebook, Instagram and even TikTok.

However, Elon Musk has a plan that he believes will be the most effective way to eliminate bot accounts. X is to be hidden behind a paywall. In other words, each user will have to pay a monthly subscription to use the platform. Musk announced his plans during a conversation with Israeli Prime Minister Benjamin Netanyahu. Interestingly, the debate with the other meeting participants concerned mainly artificial intelligence. Mayor X stated that a small fee (he did not specify the amount) is a natural direction of development if the platform wants to get rid of fake accounts.

Technical Market Outlook:

The ETH/USD pair has broken below the short-term trend line support around the level of $1,630 and made a new local low at the level of $1,605. The momentum broken to the negative territory as well, so the bears are in temporary control of the market. The intraday technical resistance is seen at the level of $1,638 and the nearest technical support levels are located at $1,605. Please notice, the price is below the 50 and 100 MA on the H4 time frame chart already.

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.