16.02.202310:18 Forex Analysis & Reviews: Technical Analysis of ETH/USD for February 16, 2023

Crypto Industry News:

According to the media, the president of the United States is to appoint Laela Brainard, vice chairman of the Federal Reserve, as his chief economic adviser. The problem is that it is considered a staunch enemy of cryptocurrencies. He claims these could undermine US financial stability. On the other hand, she is in favor of issuing a digital dollar that would be highly centralized and monitored by the authorities.

Brainard is not someone anonymous in the Democratic community. She had previously worked at the White House, serving as deputy director of the National Economic Council (NEC). It happened during the tenure of President Bill Clinton. In 2014, she was also nominated for the position of governor of the Fed by Barack Obama.

But let's get back to her attitude towards cryptocurrencies. She had previously expressed concern about the rise of decentralized finance (DeFi), saying this new technology could be exploited by criminals.

At the same time, she is delighted with the idea of creating a digital dollar. She acknowledged that the US central bank is already working on such a financial product, and said that a digital version of the dollar could provide better consumer protection and monetary stability.

As a consolation, we can add that she is probably not a supporter of the cryptocurrency ban. Six months ago, she appealed to the authorities to quickly regulate this market.

Technical Market Outlook:

The key technical support on ETH/USD pair, which is located at $1,487 was tested by bears already and now the market is on the monthly highs trying to test the level of $1,713. The bulls had broken above the local trend line and continue to move higher towards the next target. Only a clear and sustained breakout below the level of $1,487 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.