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Technical Analysis of ETH/USD for May 8, 2020
Crypto Industry News:
The Commodity and Futures Commission (CFTC) has charged US and Israeli companies with alleged fraud of $ 15 million, including cryptocurrencies and binary options. Court documents mention two major frauds, the first of which occurred between October 2013 and November 2016 and concerns binary options. The second concerns digital resources such as Bitcoin and Ethereum, which took place from November 2013 to August 2018.
CFTC charged Tal Valariola and Itayea Baraka of Digital Platinum Limited for helping the American company All In Publishing (AIP) to create and promote numerous misleading investment programs among US and foreign investors.
During the allegedly misleading marketing campaign, as many as 51.917 users opened a binary options account and deposited a total of almost $ 13 million. In addition, 8,043 users opened a digital asset trading account, depositing a total of over $ 2 million.
Technical Market Outlook:
The ETH/USD pair has again bounced from 38% Fibonacci retracement located at the level of $195.94 and violated the short-term trend line resistance around the level of $205.23. The bulls are continuing the rally towards the level of $214.67, but so far were rejected from this level. There is a Bearish Engulfing pattern made around this level, so the rally might be temporary postponed. The nearest technical support is now seen at the level of $209.89.
Weekly Pivot Points:
WR3 – $296.61
WR2 – $243.36
WR1 – $224.05
Weekly Pivot – $205.69
WS1 – $188.49
WS2 – $168.64
WS3 – $150.80
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 $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 material has been provided by InstaForex Company – www.instaforex.com
