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Technical Analysis of ETH/USD for June 9, 2020
Crypto Industry News:
The report, published by the Hong Kong Treasury Department on June 1, provided detailed data on accelerated growth of blockchain popularity in the fintech industry.
Blockchain is currently the fastest growing segment of this industry in Hong Kong. 22 of the 57 companies that started operations over the past year are based on this technology. WealthTech is the second fastest growing sector, which includes 20% of newly established companies. Next up is the payment sector – 17% and InsurTech – 9%.
The report states that since April 2019, the number of fintech companies operating in Hong Kong has exceeded 600. Since then, eight licenses for virtual banks and four licenses for virtual insurance companies have also been issued.
According to the report, DLT solutions for enterprises are the largest sub-sector in the blockchain industry in Hong Kong. He is represented by 45 percent of all companies. Cryptocurrency trading platforms cover 27 percent of the industry, followed by financial advisory companies for digital assets – 14%, and accounting companies – 9%.
Technical Market Outlook:
The ETH/USD pair has been consolidating under the upper channel line for the last 24h. No important moves were detected, no new signal appeared. 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
