Crypto Industry News:
During the G20 summit, US Treasury Secretary Janet Yellen said that her country is not thinking of banning cryptocurrencies. However, it calls for a regulatory framework.
Yellen said that today it is of great "importance to put in place a strong regulatory framework" that would apply to entities in the cryptocurrency market. She also noted that the US is not suggesting a "total ban on cryptocurrency activities."
Yellen's remarks coincide with the words of the Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, who said that regulating the industry is a priority for global authorities.
In addition, Georgieva pointed out to journalists that it is necessary to distinguish central bank digital currencies (CBDC) from stablecoins and cryptocurrencies. The former are issued by central banks, i.e. de facto states. Miners, who are not public entities, stand behind cryptocurrencies.
In turn, India's finance minister, Nirmala Sitharaman, appealed to his counterparts from other G20 countries to jointly address the macroeconomic aspects of digital assets. He himself has long supported cooperation with other jurisdictions in the development of regulations on digital currencies. For several years, the Indian government has also been debating whether to regulate or ban the use of cryptocurrencies.
On February 23, the IMF published an action plan for cryptocurrency assets. He also called on countries not to recognize bitcoin as legal tender. The document of the organization also describes the regulatory framework related to macroeconomic and legal issues and international cooperation regarding the blockchain market.
Technical Market Outlook:
The Ethereum market has bounced from a 61% Fibonacci retracement level of the last wave up seen at the level of $1,569 and is trading back above 100 MA around the level of $1,645. The intraday technical resistance is seen at the level of $1,677 and $1,680 (50 DMA). 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 - $1,672
WR2 - $1,654
WR1 - $1,642
Weekly Pivot - $1,635
WS1 - $1,624
WS2 - $1,616
WS3 - $1,581
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.
