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Technical Analysis of ETH/USD for Mar 25, 2020
Crypto Industry News:
The Twitter cryptographic community reacted with horror at the news that the US Federal Reserve had received a mandate to print as much new money as needed to avoid a deeper financial crisis due to the coronavirus pandemic.
Charles Hoskinson, CEO of Cardano developer IOHK, tweeted that he “senses the true climate of OneCoin” from the US dollar.
The chairman of the Federal Reserve Bank in Minneapolis, Neel Kashkari, mentioned in a television interview that there is an infinite amount of cash in the Federal Reserve:
“Congress literally told us. Here is the authority they have entrusted to us: print money and ensure liquidity in the financial system.”
The idea that the Federal Reserve would be allowed to print an infinite amount of new money sparked a comparison with OneCoin, which was a scam that earned at least $ 4 billion on unsuspecting investors, unaware that the token they were buying had no base value.
Technical Market Outlook:
The ETH/USD pair has bounced from the trend line support around the level of $119.00 and is currently testing the local technical resistance located at the level of $136.62. If bulls will not break through this level, then the price will likely drop towards the trend line support again. Any violation of this level will likely lead to another wave down towards the nearest technical support seen at the level of $110.33. The key short-term technical support is seen at the level of $89.35 (13th March sell-off low). Please notice, that any breakout through the black trend line support will accelerate the wave down.
Weekly Pivot Points:
WR3 – $202.93
WR2 – $178.10
WR1 – $150.26
Weekly Pivot – $126.31
WS1 – $100.57
WS2 – $71.34
WS3 – $47.20
Trading Recommendations:
All the Elliott Wave based impulsive wave scenarios have been invalidated due to the important levels violation. The fear of the coronavirus consequences is too strong to traders and it rules on the financial markets, so it is better to stay away from the trading platform until the dust settles. Trade safe.
The material has been provided by InstaForex Company – www.instaforex.com
