Technical Analysis of ETH/USD for May 26, 2020

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Crypto Industry News:

The President of Iran has commissioned central bank officials and ministries of energy, communication and IT to prepare plans for a national strategy for mining cryptocurrencies.

As reported by Iranian media, officials received information during the 137th session of Iran’s economic coordination center earlier this week, chaired by President Hassan Rouhani. The situation takes place shortly after the announcement by the Iranian government of a policy of denominating the national currency, or rial, to address the problem of paralyzing chronic inflation. Earlier this week, Iran also introduced cryptocurrencies to its foreign currency exchange regulations and enforcement measures against currency smuggling. This will cause cryptographic exchanges licensed by the Central Bank of Iran to be subject to applicable regulatory regimes for foreign currencies during periods of extreme capital outflows from emerging markets during a global pandemic.

While further details on Iran’s national cryptocurrency mining strategy have not yet been clarified, Iran has already issued about 1,000 licenses for cryptocurrency miners in the country and has granted permission to the Turkish cryptocurrency mining company iMiner to set up a facility with 6,000 excavators in of the province of Semnan. The Iranian government allowed the extraction of cryptocurrencies as industrial activity in July 2019. In the ongoing difficult economic situation, the general of the Guard Corps of the Islamic Revolution turned to the crowds earlier this year, calling on the country to use cryptocurrencies to circumvent sanctions.

President Rouhani himself argued for the creation of an alternative currency, potentially digital, to loosen the grip that US sanctions exert as “the main tools for dominating hegemony and intimidation” of certain nations.

Technical Market Outlook:

The ETH/USD pair has been consolidating for the last 24h around the level of $200. Earlier this week, Ethereum bounced from the level of $190.55, but did not manage to make a new high above the level of $217. After the Shooting Star candlestick was made at the level of $209.89 the Ethereum rate begin to move lower. The bulls had all the weekend to push the prices higher, but they failed and now the market is very close to the key short-term trend line support located around the level of $196.30. Any violation of this level will open the road towards the next technical support located at the level of $193.78 and $188.88.

Weekly Pivot Points:

WR3 – $234.40

WR2 – $228.76

WR1 – $216.85

Weekly Pivot – $204.00

WS1 – $192.21

WS2 – $178.64

WS3 – $166.85

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

Source:: Technical Analysis of ETH/USD for May 26, 2020:

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