Crypto Industry News:
$258 billion lawsuit filed against Tesla and SpaceX CEO and founder Elon Musk, his aforementioned companies, for allegedly "engaging in a crypto pyramid." Keith Johnson, who invested in and promoted Dogecoin early, filed a lawsuit in a federal court in Manhattan today.
Johnson accuses Musk, Tesla, SpaceX and DOGE of DOGE's "overpricing fraud" through "false and misleading" tweets, the lawsuit said. He also expects Musk to compensate up to $ 86 billion.
Moreover, the DOGE investor group that Johnson represents is also seeking $ 172 billion in damages. According to the lawsuit, this is a "reasonable estimate of investors' losses" from trading the crypto meme from 2019.
As we read further, Musk's tweets about Dogecoin were part of the "pump and dump" program to get rid of his stake in DOGE. The billionaire has long been a loud supporter of Dogecoin, frequently tweeting about the cryptocurrency even before the boom in 2020.
In March, Elon Musk announced on Twitter that SpaceX would start accepting Dogecoin as payment for its merchandise. It also revealed that Tesla Motors would accept payments for goods in DOGE.
The lawsuit also includes comments from Warren Buffett, Bill Gates and other influencers who doubt the validity of cryptocurrencies. Since the currency has no value of its own, according to Johnson, it can be compared to a pyramid.
Technical Market Outlook:
The ETH/USD pair has been continuing the up move above the short-term trend line support. The recent local high was made at the level of $1,168, however, it is still not enough to terminate the down trend just yet. The next target for bulls is seen at the level of $1,233, which is the technical resistance. The intraday technical supports are seen on the levels of $1,048, $1,008 and $1,100. The larger time frame chart trend remains down and as long as the key short-term technical resistance is not clearly violated, the outlook remains bearish.
Weekly Pivot Points:
WR3 - $2,249
WR2 - $1,737
WR1 - $1,420
Weekly Pivot - $1,161
WS1 - $818
WS2 - $551
WS3 - $206
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 $1,420 and bears continue to make new lower lows with no problem 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 $1,000. Please notice, the down trend is being continued for the 11th consecutive week now.
