20.12.202210:36 Forex Analysis & Reviews: Technical Analysis of ETH/USD for December 20, 2022

Crypto Industry News:

Grayscale Bitcoin Trust CEO Michael Sonnenshein in a letter to investors said that if the trust fails to convert into an exchange-traded fund (ETF), potential moves could include a call for a 20% stake (120,000 BTC) in a $10 billion trust fund. The fund, or rather its shareholders, currently owns approximately 633,000 BTC. A tender offer would in fact mean an appeal to shareholders to get rid of their shares within a strict time limit, effectively returning the value invested in the fund. Grayscale's Bitcoin Trust was originally planned as an exchange-traded alternative to buying BTC. It also intensively applied for the status of an ETF fund, engaging a discount or premium to the net asset value (NAV). The premium or discount describes the difference in value between the shares in the mutual fund and the value of the underlying asset held, in the form of Bitcoin. When the value of the trust shares is higher than the underlying bitcoin, this is considered a bonus. When the value of the stock falls below the underlying bitcoin, it is considered a discount. Currently, the fund is traded at a discount of almost 50% to the underlying asset.

Investors have had to consider various options recently as the Grayscale Bitcoin Trust faces a steady decline in value, extending losses to record lows and fueling the fears of already nervous investors.

Technical Market Outlook:

The Ethereum cryptocurrency has made a new local high at the level of $1,350 and then retraced more than 61% during the corrective cycle. The level of $1,350 is the key short-term technical resistance for bulls, so in order to continue the up move the bulls need to break through it on their way towards $1,400. The bulls were rejected from this level towards the 100 SMA on the H4 time frame chart and are consolidating around the level of $1,200 inside a Triangle pattern. The level of $1,217 will act as the technical resistance, so please keep an eye on this level. The momentum is weak and negative already, so the corrective cycle might extend towards the technical support located at $1,150.

Weekly Pivot Points:

WR3 - $1,222

WR2 - $1,201

WR1 - $1,190

Weekly Pivot - $1,181

WS1 - $1,169

WS2 - $1,160

WS3 - $1,139

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 at the level of $2,029. The key technical support for bulls at $1,281 was broken already and the new yearly low was established at $1,074. If the down move will be extended, then the next target for bears is located at the level of $1,000.