24.10.202210:10 Forex Analysis & Reviews: Technical Analysis of ETH/USD for October 24, 2022

Crypto Industry News:

The amendment to the Financial Services and Markets Act, which is currently being processed by the UK Parliament, will expand the powers of the authorities to regulate various activities in the digital asset market. The amendment was written by Andrew Griffith, MP and Financial Secretary of the Treasury.

The 335-page bill was introduced into legislative circulation in July and had its second reading in the House of Commons on September 7. According to the justification accompanying the said amendment, this one is intended to "clarify" the "rights related to the promotion" of financial services and other cryptocurrency related activities.

The Financial Conduct Authority (FCA), the British regulator of the financial market, published an open letter on August 9, which describes in detail the supervisory strategy for "alternative" financial companies, i.e. those from the cryptocurrency market. Let's add that most of the cryptocurrency companies in the UK are not now under the control of the FCA, although they have the option to apply for a special license to operate. Anyway, they will have to do the latter next year at the latest. The registration process currently only covers anti-money laundering and anti-terrorist financing measures. However, it turned out to be too difficult for many applicants.

The FCA also took action in August on advertising high-risk financial products and made it clear that cryptocurrency assets could be risky.

In March this year. FCA also announced that it is looking for employees with experience in the field of cryptocurrencies. As it was then reported, the authority is preparing to launch a new department responsible for regulating this sector.

Technical Market Outlook:

The ETH/USD pair had been rejected form higher price levels after the failed breakout above the trend line. The local high was made at $1,369 and then the market reversed back under the trend line again. The momentum on the H4 time frame chart had hit the extremely overbought market conditions, so the pull-back is imminent. The nearest technical support is seen at $1,344 was broken, so the next are seen at $1,318 and $1,299. Please keep an eye on the market behavior close to the local trend line (marked orange on chart). The demand zone is now located between the levels of $1,191 - $1,1219.

Weekly Pivot Points:

WR3 - $1,413

WR2 - $1,379

WR1 - $1,357

Weekly Pivot - $1,345

WS1 - $1,323

WS2 - $1,311

WS3 - $1,267

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 at the level of $2,029. The key technical support for bulls is seen at $1,281 as a part of the demand zone located between the levels of $1,252 - $1,295. If the down move will be extended, then the next target for bears is located at the level of $1,000.