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Technical analysis of ETH/USD for Feb 26, 2020
Crypto Industry News:
The New Jersey legislature is now considering a new bill that would require cryptocurrency companies to obtain the appropriate operating license.
On February 20, Yvonne Lopez proposed a law on digital technologies and Blockchain technology. The Act introduces new requirements for companies dealing with virtual currencies and creates consumer-friendly security, requiring cryptographic companies to disclose their legally registered names, anti-money laundering (AML) and terrorist financing (ATF) policies, and their licensing history and legality to the Banking Department and New Jersey State Insurance.
Although the largest Bitcoin growth occurred over three years ago, there were no state cryptocurrency regulations in New Jersey. Unlicensed cryptographic operators had to be tried at federal level through the Department of Justice. Lopez emphasized the need for local solutions to these problems:
“People see and hear about [Bitcoin] in their daily lives, but most are not entirely sure what it is. We need to take steps to protect consumers who want to invest in cryptocurrencies while enabling the industry to grow further in New Jersey,” he says.
The Act also requires cryptographic companies to disclose their terms for consumer accounts and their protection by the Federal Deposit Insurance Cooperation (FDIC), as do traditional bank account holders. Each applicant would have to provide a fee schedule and any information regarding the risks associated with investing in digital assets.
Technical Market Outlook:
The local counter-trend corrective cycle on the ETH/USD pair has hit the first target for bears seen at the level of $238.68 – $235.62 zone. The weak and negative momentum supports the bearish outlook as the bears are about to test the key short-term technical support located between the levels of $225.12 – $229.81. The fear of coronavirus is spreading across the financial markets and the cryptocurrency market is involved as well, together with stocks and risky currencies.
Weekly Pivot Points:
WR3 – $334.89
WR2 – $309.29
WR1 – $291.76
Weekly Pivot -$264.76
WS1 – $245.87
WS2 – $220.22
WS3 – $202.34
Trading recommendations:
The wave 2 corrective cycles are completed at the level of $115.05, so the market might be ready for another impulsive wave up of a higher degree and uptrend continuation. This strategy is valid as long as the level of $146.94 is not violated. The current move up might be a wave 3 in developing in the overall long-term Elliott wave scenario and so far the top at the level of $288.01 might be wave 1 of the overall wave 3.
The material has been provided by InstaForex Company – www.instaforex.com
