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Technical Analysis of ETH/USD for Apr 14, 2020
Crypto Industry News:
According to Deutsche Bank, the largest central banks that have recently formed a research group on CBDC, it is the state of the pandemic that can accelerate the process of issuing the first occurrences by these institutions. According to the bank, this could happen in three years.
Earlier this year, the media reported that the European Central Bank together with the central banks of Canada, Japan, England, Sweden and Switzerland formed a think tank, whose project was also joined by BIS, with the aim of publishing the first CBDC in history.
As the bank notes, Bitcoin has a limited supply, also possible cryptocurrencies of central banks will be doomed to continuous printing of money. It will certainly cause inflation, which is tantamount to the possibility of indebtedness by governments indefinitely. This phenomenon is called Modern Monetary Theory.
It is worth noting that CBDC will be based on blockchain, which should increase the transparency of money emissions. The future will show how it will actually be.
Technical Market Outlook:
The ETH/USD pair has made a new local low at the level of $149.53 over the weekend, but bounced higher during the early Monday morning trading hours. Despite the bounce, the bears are still in control over the market as the momentum is not increasing significantly. The key technical support remains at the level of $149.53, but is a case of a violation, the next support is seen at the level of $142.77. Any bullish attempt to rally is being used as a good chance to sell the ETH for a better price so far.
Weekly Pivot Points:
WR3 – $213.33
WR2 – $193.74
WR1 – $179.45
Weekly Pivot – $159.49
WS1 – $145.21
WS2 – $125.44
WS3 – $111.55
Trading Recommendations:
The fear of the coronavirus consequences is very strong among the global investors and it rules on the financial markets. So far the global investors are not so keen to invest in cryptocurrency, because they are being perceived as risky assets. The larger time frame trend on Ethereum remains down and as long as the level of $214.67 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred.
The material has been provided by InstaForex Company – www.instaforex.com
