Technical analysis of ETH/USD for Oct 15, 2019

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Crypto Industry News:

The G7 Group has released a report in which it states that “global stablecoins” pose a threat to the global financial system. The drafts G7 report presented various types of risk associated with digital currencies. It was also stated that even if companies belonging to the Libra Association that manage regulatory issues may not obtain the consent of the necessary regulatory bodies, stating:

“The G7 group believes that no stablecoin project should start operations until legal, regulatory and supervisory challenges and risks are properly addressed. […] The solution to such threats does not necessarily guarantee that the regulatory authority will accept the adaptation of stablecoin”.

G7 also states that global stablecoins with fast scaling potential can stifle competition and threaten financial stability if users lose confidence in the coin. The report will supposedly be presented to finance ministers at the annual meeting of the International Monetary Fund this week.

Technical market overview:

The ETH/USD pair is still trading inside of the parallel ascending channel. On its way down, the bulls have bounced three times from the technical support located at the level of $176.98 which was very close to the short-term trendline support as well. So far the bounce was rather shallow, but the bounce itself is a clue that the bulls are still defending the lower prices and are willing to push the market higher. The key technical resistance is still located at the level of $196.61 and only a clear and dynamic breakout higher will open the road towards the next target at $202.70 and $215.73.

Weekly Pivot Points:

WR3 – $223.04

WR2 – $209.75

WR1 – $194.13

Weekly Pivot – $180.64

WS1 – $164.92

WS2 – $151.12

WS3 – $135.26

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

Source:: Technical analysis of ETH/USD for 15/10/2019

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