Crypto Industry News:
Ethereum, one of the largest cryptocurrencies, is once again in the media spotlight. This time thanks to co-founder Vitalik Buterin. In his recent post on his personal website, he provided an analysis of the "Community Notes" tool from Company X, formerly known as Twitter. In his opinion, this mechanism is the closest representation of the "value of cryptocurrencies" in mainstream social media.
Buterin stressed that the Community Notes tool's algorithm is entirely open source, making it very close to the ideal of credible neutrality. Although the system is not perfect, according to the founder of Ethereum, it is surprisingly useful, even in controversial situations. This tool allows users to rate tweets for their usefulness and add additional context to them.
Analyzing the "Community Notes" algorithm in detail, Buterin noted that it is not based only on a simple average of user votes. The tool can also detect political divisions and provide additional context for potentially misleading images or misinformation about COVID-19.
Technical Market Outlook:
The ETH/USD pair has broken below the 61% retracement level located at $1,828 and tested the level of $1,778 which is the key technical support for bulls. The bearish pressure is still strong, however the market conditions on the H4 time frame chart are now extremely oversold, so a bounce or a pull-back is expected soon. The nearest intraday technical resistance is seen at the level of $1,800 and $1,825.Only a strong and sustained breakout above the level of $1,874 would change the outlook to bullish, otherwise the down trend prevails.
Weekly Pivot Points:
WR3 - $1,874
WR2 - $1,857
WR1 - $1,850
Weekly Pivot - $1,841
WS1 - $1,834
WS2 - $1,824
WS3 - $1,808
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.
