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Technical Analysis of ETH/USD for May 1, 2020
Crypto Industry News:
The Swiss Association of Capital Markets and Technology (CMTA) has published a common standard for the storage and management of digital assets. Announced on April 30 by CMTA The Digital Asset Storage Standard aims to sort out the differences between cryptocurrency storage and traditional assets, and to set basic security and operational requirements for industry entities.
CMTA is an independent association, founded in Geneva in 2018. It aims to promote implemented technologies such as blockchain and digital assets on financial markets. They pointed out that the storage of digital resources is significantly different from traditional resources, which usually use centralized systems and do not rely on cryptographic mechanisms. In the case of crypto, investors need high confidence that the decentralized storage infrastructure is well developed and properly secured against loss, theft or hacking.
CMTA also outlined some of the benefits it sees in using DLT in financial markets. In particular, the association indicates the advantages of technology for small and medium-sized enterprises, for the simplification and democratization of financial mechanisms.
Technical Market Outlook:
The ETH/USD has made a trend reversal pattern at the top of rally in form of Bearish Engulfing candlestick pattern. Before the pattern emerged, the bulls have managed to hit the level of $225.54 and then the bearish pressure occurred. The rate dropped to the level of $201.51 and it is hovering above the short-term trend line support so far. The nearest support for ETH is seen at the levels of $198.72, $193.78 and $188.86. The market conditions are extremley overbought, so odds for a deeper corrective wave are still high.
Weekly Pivot Points:
WR3 – $243.80
WR2 – $220.39
WR1 – $211.16
Weekly Pivot – $187.55
WS1 – $172.98
WS2 – $155.34
WS3 – $144.09
Trading Recommendations:
The fear of the coronavirus consequences is very strong among the global investors and it rules on the financial markets. So far the global investors are not so keen to invest in cryptocurrency, because they are being perceived as risky assets. The larger time frame trend on Ethereum remains down and as long as the level of $214.67 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 material has been provided by InstaForex Company – www.instaforex.com
