Crypto Industry News:
China's repression against cryptocurrencies extends to the metaverse and NFT tokens.
Speaking at the national summit on financial security, Gou Wenjun, director of the anti-money laundering (AML) unit at the PBoC, highlighted the risk of leaving new trends in the cryptocurrency ecosystem unregulated, such as the NFT and the metaverse. He argued that while people would use these digital assets for privacy and wealth appreciation, they are also vulnerable to being used for illegal purposes such as money laundering and tax evasion.
The rapid pace of innovation in the cryptocurrency world requires greater requirements for governance and risk management, said the head of AML, adding that the isolated nature of crypto, NFT, and real-world metaverse-based elements could be used as a money laundering tool.
In a second step, Gou said China should strengthen its monitoring and analysis of digital asset transactions. He proposed that banks and payment services that provide fiat-to-crypto gateways should authenticate senders and recipients with real names, while improving the ability to identify suspicious transactions.
The PBoC official suggested improving the application of new technologies and establishing a digital asset transaction tracking system and a scene tracking system. Such a system would use artificial intelligence, machine learning, and other technologies to tag accounts that carry out transactions with probed addresses.
Finally, Gou stated that he is open to improving cooperation between financial intelligence agencies around the world to form an international coalition to fight cryptocurrency crime.
Technical Market Outlook
The ETH/USD pair has broken above the short-term trend line resistance seen around the level of $4,481 and is currently testing the breakout from above. A bounce towards the recent local high made at the level of $4,782 is welcome, so the up trend continuation had been confirmed. The nearest technical support is seen at the level of $4,435 and any violation of this level would invalidate the test and put the bears back in control of the market. The larger time frame trend is still up and the next target for bulls is seen at the level of $4,876 (last ATH).
Weekly Pivot Points:
WR3 - $5,126
WR2 - $4,890
WR1 - $4,581
Weekly Pivot - $4,237
WS1 - $3,938
WS2 - $3,595
WS3 - $3,100
Trading Outlook:
The ABCxABC complex corrective cycle might be terminated, so the next long-term target for ETH is seen at the level of $5,000. Nevertheless, in order to continue the long-term up trend, the price can not close below the technical support at the level of $2,906. The level of $1,728 (61% Fibonacci retracement of the last big impulsive wave up) is still the key long-term technical support for bulls. The level of $3,677 is the key mid-term technical support for bulls.
