02.02.202109:36 Forex Analysis & Reviews: Technical Analysis of ETHUSD for February 2, 2021

Crypto Industry News:

The Ripple case in front of the Securities and Exchange Commission threatens with severe knock-on effects for the industry.

On January 29, Ripple Labs filed a response to the SEC prosecution. Ripple, as has been said many times, argued that XRP is not a security, i.e. an investment in Ripple, and therefore does not fall under the jurisdiction of the SEC. Furthermore, Ripple is prepared to drag the rest of the industry into fighting for its arguments.

"The SEC has clearly picked two winners and has ignored a growing and strong industry that is much bigger than Bitcoin and Ether. In addition to a discovery that we will be looking for directly in a lawsuit, we have applied for the Freedom of Information Act (FOIA) for more information on about how the SEC defined Ether as a non-security, says a Ripple representative.

The proposal is likely to entail an enormous amount of records from several years of Commission documents, given how long it took to make any statements.

In the case of Etereum, the time issue is crucial. The pre-sale of Ether occurred many years before the SEC released its DAO report. The DAO report was a 2017 SEC declaration stating that certain cryptocurrencies were securities.

The SEC case against Ripple has been coming for a long time, and Ripple has spent considerable resources trying to stop it. While XRP also predates the DAO report, the key argument is that Ripple still controls most of the XRP market in a way that the Ethereum Foundation, Vitalik Buterin and Joe Lubin, for example, do not.

Technical Market Outlook:

The ETH/USD pair has bounced from the level of $1,274 again and is currently trading around the level of $1,413. Please notice, the market might be making a triangle price pattern, that had been marked on chart using the golden trend lines. The upper boundary of the potential triangle pattern is seen at the level of $1,438 and the lower boundary - around the level of $1,274. Any clear breakout above or below any of the mentioned levels will result with an increased volatility and bigger market move. The intraday technical resistance is seen at the level of $1,438 and the intraday technical support at $1,376.

Weekly Pivot Points:

WR3 - $1,679

WR2 - $1,589

WR1 - $1,419

Weekly Pivot - $1,318

WS1 - $1,150

WS2 - $1,040

WS3 - $882

Trading Recommendations:

The up trend on the Ethereum continues and the next long term target for ETH/USD is seen at the level of $1,500, so any correction or local pull-back should be used to open the buy orders. Please notice, the up trend starting to go vertical, so the volatility will be higher than average. The bullish scenario is valid as long as the level of $830 is broken.