04.08.202109:38 Forex Analysis & Reviews: Technical Analysis of ETH/USD for August 4, 2021

Crypto Industry News:

South Korea's chief financial regulator, the Financial Services Commission (FSC), is reportedly planning to shut down a dozen local cryptocurrency exchanges amid allegations of fraud.

FSC will suspend the operation of at least 11 medium-sized crypto exchanges in South Korea due to alleged illegal activities and fraudulent omnibus accounts, a local news agency said. The publication cited anonymous industry sources claiming that the names of the exchanges had not yet been disclosed.

Sources have argued that these crypto exchanges will not be able to obtain FSC approval to operate. The report also noted that the authority plans to tighten rules on smaller crypto exchanges in South Korea.

The news of the alleged closings came at a time when several smaller South Korean crypto exchanges recently suspended operations.

South Korean crypto exchanges have recently come under tighter regulatory scrutiny as authorities require local digital asset service providers to register their businesses by September and create real-name trading accounts. In particular, smaller and medium-sized crypto exchanges have had trouble getting licenses from the relevant authorities, unlike major crypto exchanges such as Upbit, Bithumb, Coinone, and Korbit.

Technical Market Outlook:

The ETH/USD pair rally above the $2,500 had been terminated at the level of $2,695 after the Bearish Engulfing candlestick pattern was made. The market dropped towards the lower channel line around the level of $2,453 and this level is a technical support for bulls as well. Please keep an eye on the market reaction around the key technical resistance located at the level of $2,850, because once violated, will act as the technical support zone on the bulls way towards the next target seen at $3,000.

Weekly Pivot Points:

WR3 - $3,455

WR2 - $3,077

WR1 - $2,935

Weekly Pivot - $2,529

WS1 - $2,363

WS2 - $1,988

WS3 - $1,819

Trading Outlook:

Ethereum might have started the next wave up as the next long-term target for bulls is seen at the level of $3,000. Nevertheless, in order to resume the long-term up trend, bulls have to break through the last swing high seen at the level of $2,880. The level of $1,728 (61% Fibonacci retracement of the last big impulsive wave up) is still the key support for bulls.