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Technical analysis of ETH/USD for Nov 21, 2019
Crypto Industry News:
Heath Tarbert, chairman of the US Futures Trade Commission (CFTC), says it is not yet clear what kind of product Libra will be – including whether it can be a security.
Talking to the media at the CME Group Global Financial Leadership conference, Tarbert discussed the current US regulatory position on cryptocurrencies and Blockchain and the country’s global position in this technology.
Tarbet said Bitcoin has been around for 10 years, is well understood, and CFTC “is able to classify it not as a security but as a commodity,” he said. On the other hand, Libra is “a fundamentally different product” but is currently in constant motion:
“Libra is growing and there are many unanswered questions – and the way it is constructed by linking it directly to a set of national currencies – is a completely different product.”
The CFTC decision on Libra status will probably have to wait until stablecoin – which is to be linked to the US dollar, euro, yen, British pound and Singapore dollar – be issued. The date for this event is planned for half or the end of next year if the project is able to deal with the major regulatory obstacles that have been observed so far.
David Marcus, co-creator of Libra, emphasizing that it is too early to classify the digital currency, also said that it could eventually be divided into separate stablecoins, each of which is assigned to a different fiat currency.
Technical Market Overview:
The ETH/UDS pair is still under the pressure from the supply side as bears have managed to push the price lower towards the key short-term technical support located at the level of $172.91 and made a new local low just below it, at the level of $171.55. If this level is clearly violated, then the sell-off might start and extend the move towards the level of $169.68, which is a 61% Fibonacci retracement of the whole up move. The nearest technical resistance is seen at the level of $176.00.
Weekly Pivot Points:
WR3 – $203.37
WR2 – $196.19
WR1 – $190.39
Weekly Pivot – $183.21
WS1 – $177.25
WS2 – $170.00
WS3 – $164.35
Trading Recommendations:
The best strategy in the current market conditions is to trade with the larger timeframe trend, which is still up. All the shorter timeframe moves are still being treated as a counter-trend correction inside of the uptrend. When the wave 2 corrective cycles are completed, the market might will ready for another impulsive wave up of a higher degree and uptrend continuation.
The material has been provided by InstaForex Company – www.instaforex.com
