10.03.202310:55 Forex Analysis & Reviews: Technical Analysis of ETH/USD for March 10, 2023

Crypto Industry News:

Several jurisdictions around the world have stepped up their efforts to regulate the digital asset industry. Also in Germany, the financial watchdog has issued guidance on the regulatory treatment of cryptocurrencies, including for anti-money laundering and anti-terrorist financing purposes.

The German Financial Supervisory Authority (BaFin) has confirmed that NFTs are not securities. In a recently released statement, officials argued that digital asset ownership tokens were for speculation only. Therefore, they do not qualify as an investment vehicle.

They argue that NFTs have so far not exhibited characteristics similar to financial securities such as shares, which prevents them from being considered securities in the regulatory sense.

So far, BaFin is not aware of any NFTs that could be classified as securities in the regulatory sense.

However, the regulator also added that perhaps in the future, NFTs could qualify as a security:

"If NFTs are to be classified as securities under the EU Prospectus Regulation or as investments under the Asset Investment Act (VermAnlG), a prospectus must always be prepared."

In Europe, all eyes are on MiCA. The final vote on the long-awaited EU set of crypto rules is touted as the first comprehensive European crypto framework. It excludes provisions for NFTs.

However, last summer, European Commission adviser Peter Kerstens suggested that NFT issuers could potentially be equated with crypto service providers. This will require them to regularly report on their activities to the European Securities and Markets Authority.

Technical Market Outlook:

The bears on the Ethereum market has made the new local low at the level of $1,391 after they broke below the technical support seen at $1,487. 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, which is the next technical support for bulls.

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.