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Technical Analysis of ETH/USD for July 10, 2020
Crypto Industry News:
Speaking at the Unitize blockchain conference, Douglas Arner, director of the Asian Institute of International Financial Law at the University of Hong Kong, argued that interrelationships between various global economic systems would become “one of the biggest challenges – and one of the greatest opportunities” because more and more countries around the world , is involved in creating own CBDC projects.
According to Arner, the Chinese financial system already has some predisposition to cross-border adaptation of the fast approaching digital Yuan. The expert gave an example of SWAP transactions that have been introduced by China over the past few years in cooperation with dozens of countries around the world.
“If we think about the Chinese CBDC proposal at the moment, it is largely limited to operating in the context of physical and electronic boundaries. But you can imagine how in the context of these electronic boundaries, if the system integrates with, for example, SWAP transactions that are carried out in many different countries, this type of RMB electronic area can be extended externally. ”
The United States, the EU and China will have the greatest impact
In addition, Arner listed three financial institutions that appear to have the biggest advantage in the struggling CBDC race. These include Fed Reserve, People’s Bank of China and the European Central Bank, which he described as “the main central banks that issue currency”:
“These are different animals than all others. What Canada, Sweden, the United Kingdom, Singapore, Australia and Saudi Arabia can do is really interesting and nice, but the rest of the world potentially won’t accept it in the context of large economic or financial transactions. ”
Arnern stated that:
“There is definitely an element of potential geopolitics – not necessarily competition, but potential alternatives or even fragmentation in the future.”
A few days ago, we wrote about the head of Visa – Cuyu Sheffield, who believes that the central bank’s digital currencies, i.e.CBDC, may be one of the most important trends in the coming decade.
Technical Market Outlook:
After the Shooting Star candlestick pattern had been made at the level of $248.20, the ETH/USD pair has retraced 50% of the last wave up. The bulls are trying to bounce from the level of $235.13, but so far they can not break through the nearest technical resistance seen at the level of $238.68. Any extension to the downside will directly expose the level of $232.02 for a test and any violation of this level will likely confirm the short-term top on the Ethereum at the level of $248.20.
Weekly Pivot Points:
WR3 – $241.60
WR2 – $236.80
WR1 – $229.63
Weekly Pivot – $225.04
WS1 – $218.03
WS2 – $213.12
WS3 – $205.61
Trading Recommendations:
The larger time frame trend on Ethereum remains down and as long as the level of $288 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 next key technical support is seen at the level of $174.82.
The material has been provided by InstaForex Company – www.instaforex.com
