01.06.202211:24 Forex Analysis & Reviews: Technical Analysis of ETH/USD for June 1, 2022

Crypto Industry News:

Singapore's financial authorities (MAS) have launched Project Guardian, a blockchain-based digital asset test that will use tokenization. The project will include regulated financial institutions serving as "confidence anchors", with pilot participation by JP Morgan, DBS Bank and Marketnode, SGX's bond joint venture.

Project Guardian, announced today at the Asia Tech x Singapore Summit, was led by Vice Prime Minister Heng Swee Keat. With this, MAS will explore DeFi applications in wholesale financial markets, establishing a liquidity pool of tokenized bonds and deposits to borrow on a public blockchain-based network.

According to MAS director Sopnendu Mohanty, director of fintech, the lessons learned from Project Guardian will serve as a basis for informing political markets about the regulatory barriers required to use DeFi while mitigating its threats.

Both DBS and JPMorgan have experience developing digital assets and blockchain technology in their wholesale banking operations. Last year, DBS launched a digital bond worth $ 11 million as part of the STO offering. Since its inception in 2020, JPMorgan's Onyx Digital Assets Network has completed over $ 300 billion in transactions.

DBS Bank has been operating in the cryptocurrency industry for several years, establishing its own institutional-grade crypto exchange in December 2020. The company is gradually expanding the range of digital asset services it supports on the stock exchange, and the cryptocurrency solution will debut in May 2021.

Technical Market Outlook:

The ETH/USD pair continues the bounce towards the technical resistance located at $2,106 after the possible Double Bottom price pattern (still not fully confirmed pattern). The nearest technical resistance seen at $2,019 had been tested, but the market keeps making lower lows and lower highs on the H4 time frame chart, so the down trend is still intact. In order to terminate the down trend, the bulls must break through the key short-term technical resistance located at the level of $2,199.

Weekly Pivot Points:

WR3 - $2,344

WR2 - $2,313

WR1 - $1,970

Weekly Pivot - $1,829

WS1 - $1,578

WS2 - $1,463

WS3 - $1,233

Trading Outlook:

The down trend on the H4, Daily and Weekly time frames had broken below the key long term technical support seen at the level of $2,000 and continues to make new lower lows with no problems whatsoever. So far every bounce and attempt to rally is being used to sell Ethereum for a better price by the market participants, so the bearish pressure is still high. The next target for bears is located at the level of $1,420.