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Technical analysis of ETH/USD for 06/08/2019
Crypto Industry News:
The Iranian government has introduced new laws that do not recognize digital currencies as legal means of payment. National transactions carried out using cryptocurrencies are also unlawful.
On August 4, the office of Iran ratified and published a new bill, which states that the authorities do not recognize any domestic commercial activities related to cryptocurrencies – inform Iranian news agencies today.
According to reports, the new bill says that the government and the banking system will not treat digital coins as a legal tender, and the central bank of Iran will not guarantee their value.
The new regulations are probably the result of analyzes by the deputy chairman of the Iranian central bank, which in July announced that buying and selling cryptocurrencies such as Bitcoin is illegal.
Interestingly, digging itself is already allowed, albeit with the necessary approvals, as Iran has already allowed the extraction of cryptocurrencies and identified this form of activity as an industrial activity.
In order to dig cryptocurrencies in Iran, local miners will have to obtain the agreement of the Iranian Ministry of Industry, Mine, and Trade, and ensure that their mining facilities are located outside the 30-kilometer perimeter of all provincial centers in the country. Tehran itself and the central city of Isfahan are excluded from the above list because there will be stricter regulatory restrictions. Under the new rules, cryptographic miners will be charged for the use of energy on the basis of prices used for the export of energy from Iran.
Technical Market Overview:
The ETH/USD pair has tested (and failed) the 50% Fibonacci retracement located at the level of $233.77 as the pair is trying harder to break out of the horizontal trading range located between the levels of $199.68 – $235.42. The recent move up above the local resistance located at the level of $228.04 has been made on an increasing momentum, so the chances are good that it will at least test the level of $235.42. Please notice, that the corrective cycle in wave 2 of the higher degree might have been completed already. The nearest technical support is seen at the level of $225.14.
Weekly Pivot Points:
WR3 – $260.89
WR2 – $241.83
WR1 – $232.61
Weekly Pivot – $214.73
WS1 – $206.31
WS2 – $187.76
WS3 – $178.82
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 above the level of $235.42 to confirm the bullish momentum.
The material has been provided by InstaForex Company – www.instaforex.com
