13.12.202210:20 Forex Analysis & Reviews: Technical Analysis of ETH/USD for December 13, 2022

Crypto Industry News:

What almost the entire cryptocurrency community expected has happened. Sam Bankman-Fried was arrested by the authorities in the Bahamas. This is the result of pressure from the US authorities.

Information about the arrest of the former CEO of FTX was announced by the Bahamas Attorney General's Office and the country's Minister of Justice, Ryan Pinder. Bankman-Fried ended up in the hands of the Royal Police Force. This was demanded by the US authorities. The allegations against the businessman include securities fraud and money laundering,

It is almost certain that ex-CEO FTX will now go to his homeland. US authorities are demanding his extradition. Pinder said the Bahamas would "promptly" consider any such request.

A December 12 tweet from the U.S. Attorney's Office for the Southern District of New York said authorities in the Bahamas had arrested Bankman-Fried on a sealed indictment due to be opened "in the morning."

A few days earlier, New York prosecutors and FBI agents met with FTX lawyers. It was about discussing what documentation the investigators wanted to obtain for the trial.

The U.S. Department of Justice is also "thoroughly" investigating whether FTX improperly transferred hundreds of millions of dollars around the time the company filed for bankruptcy (on November 11).

Technical Market Outlook:

The Ethereum cryptocurrency has broken below the trend line seen around the level of $1,254, made a new local low at the level of $1,1240 and then got stuck inside a narrow trading range seen between the levels of $1,239 - $1,293. As the momentum is negative on the H4 time frame chart, the short-term outlook remains bearish with a target for bears located at $1,150 (28th November low). Please notice the fact, that Ethereum lost more than 37% in November alone as the crypto winter continues and any up move should be considered as the upward correction during the long-term down trend.

Weekly Pivot Points:

WR3 - $1,291

WR2 - $1,269

WR1 - $1,257

Weekly Pivot - $1,248

WS1 - $1,235

WS2 - $1,226

WS3 - $1,204

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 at $1,281 was broken already and the new yearly low was established at $1,074. If the down move will be extended, then the next target for bears is located at the level of $1,000.