Technical Analysis of ETH/USD for Apr 8, 2020

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Crypto Industry News:

A new PricewaterhouseCoopers (PwC) report showed that fundraising and cryptography mergers and acquisitions (M&A) fell last year, but that doesn’t mean the cryptographic market is dying out.

It seems that the cryptographic industry cannot attract investment from institutional investors. The giant of professional PwC services said that the number and value of fundraising as well as mergers and acquisitions showed a sharp decline last year. Cryptography-related mergers and acquisitions dropped by 76% to $ 451 million in 2019, from over $ 1.9 billion in the previous year. The amount of funds raised decreased by 40% to USD 2.24 billion.

Cryptocurrency space could not attract mainstream investment, despite the fact that Bitcoin grew strongly in the second and third quarters of 2019. In July, the price reached a peak of over $ 13,500.

Given the current COVID pandemic, the report’s authors argue that the cryptocurrency market will not attract mainstream investment in the near future. High volatility due to coronavirus panic and the economic downturn does not bode well for the space being created. It seems that the cryptographic industry is not resistant to global winds, and the number and value of fundraising and merger transactions can be affected in 2020.

Technical Market Outlook:

The ETH/USD high located at the level of $175.00 is still an important target for bulls that are still trying to make use of the momentum behind the recent move up and move higher towards the level of $176.78, which is a technical resistance for the price. On the other hand, if the bulls fail here, (there is a Bearish Engulfing candlestick pattern present on H4 time frame chart), then the next technical support is seen at the level of $156.24 – $153.46. Please notice the increasing 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

Source:: Technical Analysis of ETH/USD for 08/04/2020:

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