17.02.202310:21 Forex Analysis & Reviews: Technical Analysis of ETH/USD for February 17, 2023

Crypto Industry News:

The European Union is working on groundbreaking legislation to protect the privacy of citizens' data. Last week, the Committee on Industry, Research and Energy included zero-knowledge proof in an amendment to the Digital Identity (eID) project.

Does the EU want to protect the privacy of citizens' data?

On 9 February, the European Committee on Industry, Research and Energy presented amendments to the regulatory framework in the context of digital identity. Importantly, the amendment to the regulations includes a zero-knowledge proof standard. In terms of formalities - it is a cryptographic procedure in which one party can prove to the other that it is in possession of certain data without disclosing it.

The committee voted to update the rules. In total, 55 votes were cast in favor and only 8 against. Subsequently, the relevant authorities will discuss the project during trilogue negotiations.

Details of the project have not been made public. Despite this, the press release assured that EU citizens will be given full control over their data. In theory, they will therefore be free to decide what information can be shared and with whom. As we read in the published memo:

"The new eID would enable citizens to identify and authenticate online (via a European digital identity wallet) without having to resort to commercial providers as is the case today - a practice that raises trust, security and privacy concerns."

In mid-December 2022, a special research report was published on this topic. It explains in detail how zero-knowledge proof can be combined with the European electronic identity system eIDAS.

Technical Market Outlook:

The Ethereum market reversed from the monthly highs and is now in a pull-back mode. The local high was made at $1,721. The intraday technical support is seen at $1,617 (100 MA) and $1,579 (50 MA). Only a clear and sustained breakout below the level of $1,487 would change the short-term outlook to bearish, so please keep an eye on the $1,487 technical support. Any violation of this level would likely extend the drop towards $1,345, but in order to do this, the volatility must increase significantly.

Weekly Pivot Points:

WR3 - $1,569

WR2 - $1,541

WR1 - $1,532

Weekly Pivot - $1,513

WS1 - $1,503

WS2 - $1,484

WS3 - $1,456

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 2022 at the level of $2,029. The key technical support for bulls at $1,281 was broken already and the new swing low was established at $1,074. There is a clear test of the 50 WMA located at the level of $1,080, so any breakout below the moving average and a weekly candle close below moving average will be considered as another indication of the down trend continuation. If the down move will be extended, then the next target for bears is located at the level of $1,000.