08.03.202310:01 Forex Analysis & Reviews: Technical Analysis of ETH/USD for March 8, 2023

Crypto Industry News:

Law enforcement in Singapore has reportedly launched an investigation against Terraform Labs, co-founded by Do Kwon. The authorities also estimated that the 31-year-old developer is not hiding in the country.

The collapse of the native token LUNA and its algorithmic stablecoin UST was one of the "darkest" events in crypto last year. The stablecoin, which was supposed to have a fixed price of $1, lost its exchange rate against the dollar in May 2022 and fell well below its target value.

Realizing the turmoil, investors began selling their UST reserves. This resulted in the minting of more LUNAs to stabilize the free fall, greatly increasing the supply of the native coin. In the end, both assets lost virtually all of their value in a matter of days, resulting in multi-billion dollar losses for investors and a wide market decline that echoed for months.

Affected investors and numerous institutions accused Do Kwon, co-founder of Terraform Labs, of complicity in the collapse. However, he was uncooperative and allegedly left South Korea to avoid the consequences of the alleged fraud.

Technical Market Outlook:

The bears on the Ethereum market has manage to push the prices towards the key short-term technical support seen at the level of $1,558 and made the new local low at the level of $1,542. The market has been seen trading horizontally since then, but the bearish pressure is increasing and traders might see the breakout soon. The intraday technical resistance is seen at the level of $1,677 and $1,680. A sustained breakout below the level of $1,487 would change the mid-term outlook to bearish, so please keep an eye on the $1,487 technical support (swing low). 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 - $1,597

WR2 - $1,577

WR1 - $1,568

Weekly Pivot - $1,560

WS1 - $1,550

WS2 - $1,542

WS3 - $1,524

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.