FX.co ★ Technical Analysis of ETH/USD for November 13, 2023

Crypto Industry News:

Federal authorities in New Jersey decided to confiscate cryptocurrency worth $54 million. This is the result of the criminal activities of a drug trafficking group. This action is the result of an investigation conducted against Christopher Castelluzzo and two other members of an unidentified criminal group.

Castelluzzo, currently serving two concurrent 20-year sentences, tried to communicate with his accomplices. All this to transfer funds to another country. The purpose of this operation was, of course, to avoid taxation. The other two members of the group are Luke Atwell - Castelluzzo's friend and business partner. The latter is also serving a similar sentence. There is also Brian Krewson, who manages the estate of both friends in their absence.

According to court documents, Castelluzzo and his accomplices trafficked drugs through cryptocurrencies on various dark web markets. And it has been this way since 2013. Although he only had 0.49 BTC, most of the confiscated funds were invested in other cryptocurrencies. Virtually all of them have increased significantly in value since then.

The largest part of the confiscated funds is Ether - 30,000 ETH, acquired during the Ethereum Initial Offering (ICO). Additional investments were also made in Chainlink, Polkadot, Algorand and eight other cryptocurrencies (not including BTC and ETH).

Technical Market Outlook:

The ETH/USD pair has extended the up move and made another swing high at the level of $2,135. The next target for bulls is seen at the level of $2,140, but for now the it is time for a pull-back. The intraday technical support is seen at $2,015 and the intraday technical resistance is seen at the level of $2,090. The momentum remains strong and positive, however, the Bearish Divergence is seen on the H4 time frame chart already and the market participants are reacting on this situation accordingly. The key short-term technical support for ETH is seen at the level of $1,911.

Weekly Pivot Points:

WR3 - $2,193

WR2 - $2, 093

WR1 - $2,070

Weekly Pivot - $2,048

WS1 - $2,024

WS2 - $2,002

WS3 - $1,957

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.