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Technical analysis of ETH/USD for 01/08/2019
Horizontal trading conditions in low volatility continue in this pair
Crypto Industry News:
Nasscom, the leading Indian trade organization, said it was against a widespread ban on cryptocurrencies that had recently proposed a government panel in the country.
“Nasscom believes that the recent proposal of the inter-ministerial governmental committee to ban all cryptocurrencies, except those supported by the government, is not the most constructive measure. […] Instead, the government should work on creating a risk-based framework for regulating and monitoring cryptocurrencies. and tokens, “we read in a local magazine.
According to the publication, Nasscom claims that cryptographic projects can always be tested in regulatory sandboxes before commissioning. The company also believes that banning cryptography will only serve to push off legitimate companies that already adhere to compliance rules.
Nasscom believes, however, that work should be done to create a regulatory framework to reduce illegal activities in the cryptographic space:
“We should strive to create a regulatory framework that will constantly monitor and prevent illegal activities. The regulation would allow law enforcement agencies to better prepare themselves to understand these new technologies, enable them to collect data on criminal proceedings and take enforcement actions”.
Technical Market Overview:
Not much has changed at this market since the beginning of the week as the ETH/USD pair still keeps trading inside of a narrow price range between two levels of $189.91 – $223.38. The level of the local support at $199.68 has been tested, but the price did not break below but bounced back to the range. The bulls did not make any decision regarding the possible move higher, so the bullish momentum is decreasing as the price goes nowhere fast. In order to continue the move upwards, the bulls must break through the Fibonacci retracement levels located at $223.38, $233.77 and $244.16. Oterwise, the market will stay inside of the trading range or will be pushed lower by bears to test the technical support at the level of $189.91 again.
Weekly Pivot Points:
WR3 – $247.21
WR2 – $236.28
WR1 – $220.47
Weekly Pivot – $209.37
WS1 – $191.97
WS2 – $182.25
WS3 – $161.51
Trading recommendations:
The best strategy in the current market conditions is to trade with the larger timeframe trend, which is still up. All the shorter timeframe moves are being treated as a correction inside of the uptrend. The current cycle is wave 2 of the higher degree and it might have been completed, so the uptrend should resume sooner or later.
The material has been provided by InstaForex Company – www.instaforex.com
