17.05.202209:13 Forex Analysis & Reviews: Technical Analysis of ETH/USD for May 17, 2022

Crypto Industry News:

The Nigerian Securities and Exchange Commission (SEC) has announced new rules governing the issuance of digital assets as securities. The regulations also contain provisions on registration requirements for platforms offering digital content. Virtual asset service providers and digital asset exchanges are covered by a new set of rules that was recently published by the commission.

Under the new rules, individuals or entities wishing to raise funds through a coin offer or the private sale of tokens must first submit an initial "evaluation form and white paper draft". In the draft white paper, the business license applicant must provide "complete and up-to-date information on initial digital asset projects, business plan and feasibility study".

The draft document must also include a brief description of the initial offering of the digital asset, the value of each token, and the privileges they give to the buyer. The SEC also stated that the use and allocation of funds must also be specified in this document.

Regarding the white papers on initial projects offering digital content, the committee said that the document should contain a disclaimer stating that this is not an offer to sell. Once the required documentation has been submitted, the SEC will review it for a decision.

Upon reaching its decision, the SEC will inform the issuer within five days of the completion of the review.

Technical Market Outlook:

The ETH/USD pair has bounced from the new swing low at the level of $1,700 and is currently trading around the level of $2,100 as the bulls consolidate the recent gains. The recent up move might have been terminated at the level of $2,163 as the Shooting Star candlestick pattern was made at this level. The nearest technical resistance is seen at $2,199, but the weak and negative momentum supports the short-term bearish outlook with a new target for bears seen at the level of $1,420. The market keeps making lower lows and lower highs on the H4 time frame chart, so the down trend is intact.

Weekly Pivot Points:

WR3 - $3,385

WR2 - $2,946

WR1 - $2,555

Weekly Pivot - $2,120

WS1 - $1,688

WS2 - $1,275

WS3 - $820

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 $2,000 and continues to make new lower lows with no problems 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 $1,420.

Exchange Rates 17.05.2022 analysis

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

Sebastian Seliga,
Analytical expert of InstaForex
© 2007-2022
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