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Technical analysis of ETH/USD for 02/08/2019
Crypto Industry News:
The general manager of a company dealing in trade and investment in cryptocurrencies, Circle, believes that the United States will create appropriate regulations, as more and more companies are moving abroad.
Speaking in an interview with Bloomberg, Jeremy Allaire, he pointed to current trends for cryptographic market participants to move abroad as a factor motivating future regulatory policy in Washington.
Allaire’s comments come as a follow-up to his testimony on Tuesday’s hearings on cryptography and Blockchain, the latest in a series of sessions that US lawmakers have conducted about the growing industry.
“The increase in the number of projects related to digital resources outside the United States, the movement of companies to leave the US and projects wanting to start operations outside the United States is definitely attracting people’s attention, I think it will eventually lead to legislative initiatives to try to provide adequate safeguards and protect investors but also clarity, which is very much needed to enable the development of technology and industry “- he said.
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. Otherwise, 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. We are waiting for a breakout.
The material has been provided by InstaForex Company – www.instaforex.com
