14.02.202309:52 Forex Analysis & Reviews: Technical Analysis of ETH/USD for February 14, 2023

Crypto Industry News:

According to American media, the Securities and Exchange Commission (SEC) will sue Crypto Trust Co. Paxos for supporting the BinanceUSD (BUSD) stablecoin issuance. Additionally, Paxos is facing an investigation by the New York Department of Financial Services (NYDFS), which urged the company to stop further BUSD issuances, which Paxos has already done.

What is BUSD? It is a Binance-branded stablecoin previously issued by Paxos, a New York-regulated custodianship that is temporarily licensed by the Office of the Comptroller of the Currency, a federal banking regulator.

However, this is probably not the only problem, because last week the company received the so-called Wells notification, which means that regulators have identified irregularities in its functioning. The news actually comes just after the SEC imposed a $30 million fine on the Kraken exchange, alleging that its staking services were an offer of unregistered securities. Kraken did not admit or deny the SEC allegations as part of the settlement, but closed all of its US staking programs and paid the penalty.

So we see that SEC chief Gary Gensler intends to enter the cryptocurrency industry with the door and the current investigation may be a broader operation.

Technical Market Outlook:

The ETH/USD pair has reversed from the level of $1,700 again, so the next target for bulls, seen at the level of $1,788 (September 2022 high) is moving out of sight. The key technical support located at $1,487 was tested by bears already and now the market is trying to bounce. Only a clear and sustained breakout below this level would change the short-term outlook to bearish, so please keep an eye on the $1,487 technical support. Any violation of this level would likely extend the drop towards $1,345, but in order to do this, the volatility must increase significantly.

Weekly Pivot Points:

WR3 - $1,569

WR2 - $1,541

WR1 - $1,532

Weekly Pivot - $1,513

WS1 - $1,503

WS2 - $1,484

WS3 - $1,456

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. The key technical support for bulls at $1,281 was broken already and the new swing low was established at $1,074. There is a clear test of the 50 WMA located at the level of $1,080, so any breakout below the moving average and a weekly candle close below moving average will be considered as another indication of the down trend continuation. If the down move will be extended, then the next target for bears is located at the level of $1,000.