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Technical Analysis of ETH/USD for June 23, 2020
Crypto Industry News:
The UK Financial Supervision Authority (FCA) has called on all national cryptocurrency companies to register with a supervisory authority.
According to the FCA statement, companies must submit completed applications by June 30. The regulator says that the deadline is necessary to ensure that all applications will be considered by the end of the grace period on January 10, 2021.
The regulatory body has set requirements for compliance with certain types of cryptography activities that include a full risk assessment on anti-money laundering (AML) and terrorist financing (CTF) rules.
Businesses operating in the United Kingdom will have to implement both monitoring and control systems to eliminate potential threats related to AML and CTF. Failure to meet the deadline by 2021 means that they will have to stop operating in this country.
The deadline of June 30 “allows FCA to check submitted applications and ask companies questions” – we read in a statement.
In addition, traditional fintech companies dealing with cryptographic assets that are already authorized under the 2000 Services and Financial Markets Act, the Electronic Money Regulations 2011 or the Payment Services Regulations 2017 will also have to apply for streamlining of regulatory monitoring.
The supervisor warned that “it will proactively monitor compliance by companies with new regulations and take swift action where companies do not meet the desired standards.”
Technical Market Outlook:
The ETH/USD pair is testing the lower channel line seen at the level of $242.50 after the bounce from the technical support located at the level of $225.84. Despite the bounce, Ethereum is still trading below the key technical resistance seen at the level of $252.03. Moreover, any sustained violation of the nearest technical support located at the level of $238.68 might accelerate the drop towards the next support seen at the level of $235.42. The larger time frame trend remains up.
Weekly Pivot Points:
WR3 – $257.09
WR2 – $246.02
WR1 – $2437.53
Weekly Pivot – $227.45
WS1 – $218.65
WS2 – $207.59
WS3 – $198.98
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
