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Technical analysis of ETH/USD for Oct 1, 2019
Crypto Industry News:
Leading US cryptographic companies such as Coinbase and Kraken have joined forces to launch a rating system to jointly determine which digital assets are securities.
To provide greater transparency about what tokens you can trade without regulatory oversight, major US stock exchanges have created the so-called Crypto Ratings Council, according to financial media.
According to the publication, other members of the Crypto Ratings Council include Circle Internet Financial, Bittrex, Genesis Global Trading, Grayscale Investments, Anchor Labs and the DRW Holdings unit. As the report notes, the group is still recruiting participants.
The officially launched new cryptography council is expected to publish online digital asset ratings on a scale of 1 to 5, where the highest value means that the specific token is considered a security that cannot be issued, sold or traded through unregulated companies. Bitcoin is considered “1” because regulators have publicly stated that Bitcoin is not a security.
Brian Brooks, Coinbase’s chief lawyer, who reportedly invented the rating system, stressed that the question of whether a given token is a security or not is “one of the biggest uncertainties around cryptocurrencies and the reason why more asset managers don’t feel with them well.
Mary Beth Buchanan, Kraken attorney at law, expressed the hope that the US Securities and Exchange Commission (SEC) would consider the initiative a positive step, claiming that the board intends to show supervisors the efforts of stock exchanges to make decisions on this matter.
Technical Market Overview:
The ETH/USD pair keeps has bounced from the level of $163.98 which was local technical support for the bulls and now is heading towards the 50% of Fibonacci retracement located at the level of $187.37. The technical supply zone located between the levels of $172.82 – $176.66 has been clearly broken, the momentum is now increasing significantly, so there is a chance for the bulls to hit the level of 50% of even the 61% shortly.
Weekly Pivot Points:
WR3 – $256.80
WR2 – $233.68
WR1 – $197.61
Weekly Pivot – $174.45
WS1 – $137.03
WS2 – $112.52
WS3 – $77.73
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
