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Technical Analysis of ETH/USD for Apr 27, 2020
Crypto Industry News:
The Dutch crypto savings platform, Bittr, decided to close its operations before the Netherlands introduced EU anti-money laundering regulations, AMLD5. The closing of Bittr is the result of open criticism of AMLD5 in the Netherlands, where according to all information they result in cryptographic companies paying higher fees than companies offering credit cards and traditional trusts. Bittr founder Ruben Waterman announced that the platform will close on April 28.
Waterman does not agree to being forced to collect confidential data identifying his clients. While Waterman says he was willing to make some of the changes commissioned by AMLD5, he also claims that his company does not have the resources to manage the documentation or the resources to hire a clerk to handle the case. It is worth adding that Bittr is a one-man operation.
While the AMLD5 was intended to increase regulatory transparency at the regional level, by introducing a unified AML framework, various laws at the national level led to unique interpretations of AMLD5 in different jurisdictions.
The new guidelines require approximately 50 crypto companies based in the Netherlands to pay central bank supervision fees of approximately $ 1.8 million, and the costs be allocated according to the turnover of each company’s virtual currency.
Technical Market Outlook:
The ETH/USD bulls has managed to push the price towards the level of $198, which is very close to the key short-term resistance level. The rate is moving inside of a Falling Wedge pattern, so any violation of the level of $193.78 will likely result in a further sell-off towards the level of $188.86 and below. There is a clear bearish divergence between the price and momentum indicator that supports the short-term bearish outlook.
Weekly Pivot Points:
WR3 – $243.80
WR2 – $220.39
WR1 – $211.16
Weekly Pivot – $187.55
WS1 – $172.98
WS2 – $155.34
WS3 – $144.09
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
