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Technical analysis of ETH/USD for Dec 16, 2019
Crypto Industry News:
Tom Jessop, president of Fidelity Digital Assets, the American giant Fidelity dealing in cryptocurrency trading, announced that the company could add Ethereum support in 2020 if there is sufficient demand.
During an interview with the media, Jessop answered questions about the company. When asked about the possibility of using Fidelity Digital Asset Ethereum in the future, he said:
“We have done a lot of work on Ethereum. We intend to support him in the New Year. We are strongly guided by our clients.”
Jessop also said that the main obstacles to institutional use of cryptocurrencies are price volatility, lack of clarity of regulations, and perhaps above all a lack of achievement. He explained that he believes that these problems will be eased over time.
The Fidelity cryptocurrency trading platform – and custody service – was launched for a selected customer group in March. The platform is not intended for retail investors. Instead, it focuses on hedge funds, family offices, pensions, funds and other institutional investors.
Technical Market Overview:
The ETH/USD is still under pressure from the supply side of the market and is trading close to the recent lows at the level of $138.10. The last spike up has hit the 50% Fibonacci retracement only and then the market returned to the lower price levels again. Moreover, the market is still trading inside of the parallel channel, so there was no significant breakout made during the weekend yet. The nearest technical resistance is located at the level of $143.00.
Weekly Pivot Points:
WR3 – $160.13
WR2 – $155.12
WR1 – $147.83
Weekly Pivot – $142.21
WS1 – $135.13
WS2 – $130.72
WS3 – $123.35
Trading Recommendations:
The best strategy in the current market conditions is to trade with the larger timeframe trend, which is down. All the shorter timeframe moves are still being treated as a counter-trend correction inside of the downtrend. When the wave 2 corrective cycles are completed, the market might will ready for another wave up.
The material has been provided by InstaForex Company – www.instaforex.com
