FX.co ★ Technical Analysis of ETH/USD for June 25, 2021

Crypto Industry News:

About 69,000 Bitcoins have disappeared from the South African investment platform along with the two brothers who owned it.

While the facts have yet to be proven in court, if it turns out to be an exit scam rather than a hacker hack, it would be the biggest scam of its kind in history, according to Bloomberg. Either way, there were warning signs for investors - users reportedly promised returns of up to 10% per day.

AfriCrypt was founded in 2019. The company had accumulated Bitcoin worth around $ 3.6 billion when it sent a message to investors on April 13 that the platform had been hacked.

The company said it would halt operations while launching a process of "attempting to recover stolen funds and disclosed information".

South African law firm Hanekom Attorneys, which handled the case on behalf of affected users, said suspicions were raised by a message warning that "customers may follow the legal path, but please be aware that this will only delay the recovery process."

"We were immediately suspicious as the announcement pleaded with investors not to take legal action," states Hanekom Attorneys.

The law firm also claimed that "Africrypt employees lost access to back-end platforms seven days before the alleged hack."

Technical Market Outlook:

The ETH/USD recent price action looks like a V-shape reversal price pattern, nevertheless the bulls were capped at the level of $2,017 and the Pin Bars are being made just below the 38% Fibonacci retracement at $2,064. The last wave up was terminated at the trend line resistance around the level of $2,020. The nearest technical resistance is seen at the level of $2,102 and this level must be violated in order to continue the bounce, otherwise the odds for the corrective cycle to resume are high.

Weekly Pivot Points:

WR3 - $3,146

WR2 - $2,878

WR1 - $2,557

Weekly Pivot - $2,297

WS1 - $1,962

WS2 - $1,702

WS3 - $1,348

Trading Recommendations:

Ethereum has lost more than 50% of the recent gains from the lows of March 2020 and now is currently in the counter-trend corrective cycle. The next long-term target for bears is seen at the level of $1,728 (61% Fibonacci retracement of the last wave up) and $1,420 ( January 2018 swing high). The up trend is resumed when the level of min. $3,000 is clearly violated.