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Technical Analysis of ETH/USD for Apr 6, 2020
Crypto Industry News:
According to Union Bank CEO Edwin Bautista, the COVID-19 pandemic will lead to the end of cash and accelerate the adoption of digital banking services, including central bank cryptocurrency,.
In a television interview, the head of UnionBank, the ninth largest bank in the Philippines, said it could be the beginning of the end of physical cash, at least for the Philippines, a country whose preventive measures against the spread of the virus are difficult for people living on over 2,000 islands.
It is also difficult for the central bank of the country, which must improve its ability to deliver banknotes to banks and ATMs scattered around the islands. The most reasonable option is to focus on the digitization of the financial system to the extent that people can use digital money for everyday needs.
Bautista predicts that eventually banks will have to test and spend digital cash, and maybe even cryptocurrency. He is proud that UnionBank is already one of the most digitally advanced banks in the region. The bank introduced several external command and control systems for its digital system and asked some employees to work from home. That is why 95% of the bank’s branches are currently open, despite the fact that 75% of employees work remotely.
Last month, UnionBank opened 7,000 new accounts that are fully digital, while 20,000 customers downloaded the bank’s digital application within a month. Last week, members of the company’s management board had their first fully digital meeting.
Technical Market Outlook:
The ETH/USD pair has made a new local high after a breakout through the weekend consolidation zone has been made. The new high was made at the level of $148.63 in the time of writing the article. Nevertheless, the Ethereum is still trading below the level of $149.52 and the bulls are still trying to make use of the momentum behind this move up and move higher towards the level of $153.44, which is a technical resistance for the price. On the other hand, if the bulls fail here, then the next technical support is seen at the level of $132.21 – $130.87. Please notice the decreasing momentum on ETH/USD on H4 time frame chart during the last move up.
Weekly Pivot Points:
WR3 – $180.45
WR2 – $163.97
WR1 – $154.32
Weekly Pivot – $137.76
WS1 – $127.39
WS2 – $112.43
WS3 – $101.19
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
