Forex Analysis & Reviews: 09.06.2023 - Technical Analysis of...

09.06.2023 09:03 AM

Technical Analysis of ETH/USD for June 9, 2023

Crypto Industry News:

The Hong Kong Monetary Authority (HKMA) wants to test the use of the local CBDC - the Hong Kong Cyber Dollar - in the city's mortgage market. This market, nominally worth 1.8 billion Hong Kong dollars (229 billion US dollars), according to local opinions, is famous for its gargantuan heaviness and difficulties in serving customers.

To this end, the Hong Kong Monetary Authority has launched a project under which both the financial flows taking place under mortgage loans and the collateral of these loans are to be given a virtual form - simplifying them, accelerating and reducing the costs of the whole and eliminating possible, unplanned "attractions" along the way .

The cyber-dollar issued by the Central Bank of Hong Kong was piloted in May by a group of 16 companies selected for testing, which are then to submit their reports and observations to the bank.

This group includes Ripple, a company specializing in solutions using blockchain, and one of the local commercial banks, Fubon Bank. These entities will be the operators of the project planned by HKMA, under which borrowers, instead of ordinary transfers, will receive virtual wallets to which funds will flow.

Also, the discussed property titles will not be presented and checked "manually", but processed using the blockchain as tokens. They are to be used as virtual collateral for the loan. This method will make it unnecessary to check titles in the registry separately, saving you time (and a digital dollar).

It is not known whether the method will become widespread. The Hong Kong Dollar Digital Pilot Program, on which its application depends, is expected to last until September, when HKMA and the Central Bank of Hong Kong plan to collect and analyze the applications of entities participating in it.

Technical Market Outlook:

The ETH/USD pair has been seen trading under the 50 and 100 MA in a narrow trading range located between the levels of $1,861 - $1,822. The intraday technical support is seen at the level of $1,822 and was tested already. In a case of a breakout lower, the next target for bears is seen at the level of $1,782. The momentum is again weak and negative, so the outlook remains bearish.

Weekly Pivot Points:

WR3 - $1,962

WR2 - $1,919

WR1 - $1,894

Weekly Pivot - $1,877

WS1 - $1,851

WS2 - $1,834

WS3 - $1,791

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.

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*Disclaimer: The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.