Technical analysis of ETH/USD for Oct 18, 2019

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Crypto Industry News:

An investment company allegedly dealing with cryptocurrencies and foreign exchange is on the cusp with the American CFTC commission and is accused of acting as a Ponzi program.

In a press release regarding the lawsuit, the CFTC stated that it accuses Circle Society based in Nevada and its operator David Gilbert Saffron of dishonest fundraising and misappropriation of investors’ funds, as well as registration violations.

Through his company, Saffron offered binary options on currency pairs and cryptocurrency pairs, and from 2017 allegedly deceived investors for $ 11 million in Bitcoins and Fiat.

The lawsuit says that Saffron has unfairly applied for funds from at least 14 people asking for participation in the investment pool run by Circle Society. He made false claims about his commercial knowledge and “guaranteed” up to 300 percent of profits.

Instead of using the participants’ investments to actually trade binary options contracts, Saffron used the funds – transferred to its own cryptocurrency portfolio – to pay other participants, “according to Ponzi’s scheme.”

“Digital assets and other 21st century goods are very promising for our economy. Fraud programs like this one not only deceive innocent people from their hard-earned money but also threaten to weaken the responsible development of these new and innovative markets,” says President. CFTC Heath Tarbert.

The court ordered the freezing of all assets owned by Saffron and Circle Society, as well as the preservation of financial records. The hearing, in this case, will take place on October 29.

Technical Market Overview:

After falling out of the ascending channel, the ETH/USD pair has tried to bounce higher in order to test the lower line of the channel, but bulls were too weak to do so anyway. The downside momentum is clearly accelerating which is a not signal for bulls as the immediate technical support is very close at the level of $170.50. On the other hand, 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 18/10/2019

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