09.11.202210:12 Forex Analysis & Reviews: Technical Analysis of ETH/USD for November 9, 2022

Crypto Industry News:

Cryptocurrency rates are dropping quite sharply as investors' concerns about the solvency of the FTX cryptocurrency exchange and the state of customer funds are pushing BTC and ETH prices closer to new lows, and the potential possibility of spilling into other markets negatively affects the entire cryptocurrency market.

Earlier that day, Bitcoin BTC, the Binance BNB cryptocurrency, Ethereum ETH, FTX FTT token, and Solana SOL experienced a spike in the news that Binance would take over FTX, but the rebound was short-lived and ended quickly. After the Binance FTX news came out, BNB looked like the winner of the day, but the overall market crisis did not spare the stock token, which is currently $ 328, reflecting a loss of 2.6%.

Concerns about the FTX stock exchange saw the market plummet after Binance's initial LOI for FTX spurred the markets to rise. According to reports, FTX was apparently trying to raise $ 6 billion in funding to fill a gap on its balance sheet, potentially putting the deal at risk.

The cryptocurrency industry and regulators have long disagreed due to various misunderstandings or distrust of the actual use case of digital assets.

Without a working framework for regulating the crypto sector, different countries and states have tons of conflicting rules about the classification of cryptocurrencies as assets and exactly what constitutes a legal payment system.

Technical Market Outlook:

The ETH/USD pair has made a new local low at the level of $1,266 in form of a Pin Bar candlestick and immediately started a dynamic bounce. Nevertheless, the bearish pressure is still high and the next target for bears is seen at the level of $1,191 (yearly low's). The momentum is weak and negative already on the H4 time frame chart, so the down move might continue lower. The nearest technical resistance is seen at the level of $1,343. In order to extend the recent impressive rally and reverse the trend to the up trend the market must break above the last swing high seen at $1,785.

Weekly Pivot Points:

WR3 - $1,635

WR2 - $1,605

WR1 - $1,587

Weekly Pivot - $1,575

WS1 - $1,557

WS2 - $1,544

WS3 - $1,514

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.