31.05.202309:41 Forex Analysis & Reviews: Technical Analysis of ETH/USD for May 31, 2023

Crypto Industry News:

If you are a crypto-enthusiast and have thought about vacationing in Bali by paying Bitcoin for a coconut on the beach, you better rethink this plan. Bali's governor, Wayan Koster, seems a little less enthusiastic about cryptocurrency than blockchain enthusiasts. According to his warning, anyone who tries to pay for goods or renting a crypto surfboard can count on severe penalties.

In Bali, you will only pay with cryptocurrencies for a not-so-pleasant adventure with the local justice system. Using them as a means of payment can result in business closure, criminal sanctions, deportation and even a fine of up to 200 million rupees (approximately $13,300). All this because the only legal currency in Indonesia is the rupee.

These restrictions stem from a desire to protect the local currency from the widespread use of the dollar. However, there is a new option on the horizon, namely cryptocurrencies, which are gaining popularity among tourists and locals called "Silicon Bali". Despite this, local law is adamant - using them as a means of payment remains strictly prohibited.

In response to the regulations introduced by the government, many tourists expressed dissatisfaction. Some even go so far as to consider changing their holiday plans.

Technical Market Outlook:

The ETH/USD pair has been seen testing the technical support seen at the level of $1,865. The local low was made at the level of $1,858 as the market is still under the bearish pressure and bears managed to retrace 38% of the last wave up.The next technical support is seen at the level of $1,860 and $1,837. The 50% Fibonacci retracement of the last wave up is seen at $1,844. The momentum is neutral and testing the level of 49 points on the RSI indicator. The bigger time frame trend remains down.

Weekly Pivot Points:

WR3 - $1,848

WR2 - $1,826

WR1 - $1,817

Weekly Pivot - $1,803

WS1 - $1,795

WS2 - $1,780

WS3 - $1,758

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. This is the key level for bulls, so it needs to be broken in order to continue the up trend. The key technical support is seen at $1,368, so as long as the market trades above this level, the outlook remains bullish.