09.03.202309:55 Forex Analysis & Reviews: Technical Analysis of ETH/USD for March 9, 2023

Crypto Industry News:

The Russian Association of Cryptoeconomics, Artificial Intelligence and Blockchain, an organization representing the Russian cryptocurrency and blockchain technology market, appealed to President Vladimir Putin himself for help in creating regulations for the industry. Experts fear that the Russian Federation may lag behind other countries in this matter.

In a letter to the Russian head of state, members of the organization warn that the government's approach to regulating the digital asset market poses "serious risks" related to the economy's lagging behind "new financial technologies."

The association argues that the current state policy does not allow Russian companies to use the potential of new financial instruments. Moreover, it forces them to relocate to other jurisdictions. This entails direct financial losses for the state treasury.

This "extremely conservative and prohibitive approach" could cause Russia's "digital economy" to slow down. Such a turn of events, in turn, "will deprive the country of the opportunity to become a leader in the implementation of digital payment and accounting systems."

The letter sent to the president also reminded about the meeting with IT associations that took place in 2019. New regulations were discussed at that time. Although there were plans to establish regulatory sandboxes, these ideas were not implemented. In turn, the proposed changes to the Russian law "On Digital Financial Assets" make it difficult to implement innovative solutions on the market.

But what exactly do Russian experts demand? They ask the president to convene a meeting on all the issues mentioned. They also suggest establishing a working group that would prepare a pilot project to introduce digital financial technologies to the domestic market.

Technical Market Outlook:

The bears on the Ethereum market has made the new local low at the level of $1,525 as the bearish pressure is increasing. The intraday technical resistance is seen at the level of $1,677 and $1,680. A sustained breakout below the level of $1,487 would change the mid-term outlook to bearish, so please keep an eye on the $1,487 technical support (swing low). 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 - $1,597

WR2 - $1,577

WR1 - $1,568

Weekly Pivot - $1,560

WS1 - $1,550

WS2 - $1,542

WS3 - $1,524

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.