Technical analysis of ETH/USD for Oct 17, 2019

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Crypto Industry News:

Bank of England CEO Mark Carney defended Facebook’s choice to create a new currency. He highlighted the disadvantages of the current traditional financial system. Due to inefficiencies in payments, Carey believes that companies like Facebook should be involved in projects like Libra.

More specifically, he criticized the high costs of moving money, claiming that they penalize small businesses and can cost up to 200 basis points per transaction, except that they are processed too slowly.

“This is not enough these days. These payments should be immediate, they should be the same as for online banknote exchanges. They should be practically cost-free and 100% resistant” – he said.

Carney acknowledges that the problem can be solved in many ways, and notes that the challenge is “to bring online and other payments to the level that is found in many large emerging economies and several advanced economies.”

However, he also warned companies that want to try to solve this problem, noting that changes in space will be thoroughly investigated by the authorities.

Technical Market Overview:

The ETH/USD pair has made another lower low at the level of $170.50 after falling out of the ascending channel. The downside momentum is clearly accelerating which is a not signal for bulls. 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. If there is no move up back to the channel, then the next target for bears is seen at the level of $163.98 which is the next major support for the price.

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 17/10/2019

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