FX.co ★ Technical Analysis of ETH/USD for October 3, 2023

Crypto Industry News:

UBS Asset Management, a global asset management giant, decided to explore the possibilities of blockchain technology through a pilot fund program based on the well-known Ethereum platform.

UBS turns traditional forms of investment into digital "tokens". Thanks to the "UBS Tokenize" platform and Ethereum, the company is able to test how the digital fund will work in practice.

Thomas Kaegi, one of the key figures at UBS in Singapore, is excited about this initiative. "Thanks to our experience in other tokenization projects, we now want to see how this technology will impact the funds market. Our goal is to make it more seamless for our customers," he says.

Even before this project, UBS had taken several steps towards tokens. A year ago, they issued special digital bonds worth 375 million Swiss francs. Interestingly, they could be purchased both on traditional exchanges and on blockchain-based platforms. But this was just a warm-up. Shortly thereafter, they introduced another product - a tokenized note worth $50 million.

The latest initiative is part of a larger project called Project Guardian. It is created in close cooperation with the Monetary Authority of Singapore (MAS). With it, UBS hopes to test more investment strategies in the virtual world, working with different partners.

Technical Market Outlook:

The ETH/USD pair has tested the key short-term technical resistance located at the level of $1,752 and sharply reversed lower towards the 50 MA. The next target for bulls is seen at the level of $1,800 and $1,811. The intraday technical support is seen at $1,666 and $1,639. The momentum broke below the level of fifty and is currently negative, so the down move might extend lower.

Weekly Pivot Points:

WR3 - $1,765

WR2 - $1,743

WR1 - $1,731

Weekly Pivot - $1,721

WS1 - $1,708

WS2 - $1,699

WS3 - $1,676

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.