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Technical Analysis of ETH/USD for June 8, 2020
Crypto Industry News:
The US Federal Reserve branch in Philadelphia has released a new report warning of the potential effects of the Central Bank (CBDC) issuing digital currencies.
In the report, the Fed said that – after the introduction of CBDC – the central bank will become “a monopolist on deposits, attracting all deposits away from the commercial banking sector.” According to the Fed, this monopolization may threaten the transformation of maturity dates. The Federal Reserve also states that in the event of a weakening of competition from commercial banks, the central bank must be particularly careful not to disturb the transformation of maturities.
The report also explains that central banks are not investment experts and currently rely on private investment banks to finance long-term projects. However, the study noted that the implementation of CBDC should not prevent investment banks from investing, as the central bank cannot invest alone in long-term projects, but must rely on the knowledge of investment banks.
Marshall Hayner, CEO and co-founder of the cryptocurrency company Metal, said he did not thin
k CBDC would threaten private banks. Metal is building a digital banking platform using stablecoins, which according to Hayner are precursors to CBDC. He said that the introduction of such currency is only a matter of time.
Technical Market Outlook:
The ETH/USD pair has been consolidating under the upper channel line all weekend long. The lower boundary of the consolidation zone is located at the level of $246.94 and the lower one at $235.42. The last bounce was quite strong and if bears will not regain the control of the market soon, then the bulls will push the price towards last swing high seen at $253.00. The decreasing momentum supports the short-term bearish outlook for Ethereum and the next target for bears is seen at the level of $217.65 and $215.58.
Weekly Pivot Points:
WR3 – $282.07
WR2 – $267.98
WR1 – $254.66
Weekly Pivot – $238.43
WS1 – $226.18
WS2 – $210.71
WS3 – $197.39
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
