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Technical analysis of ETH/USD for Oct 21, 2019
Crypto Industry News:
G20 global finance chiefs agree that global stablecoins pose a number of risks associated with public policy and regulatory risk.
On October 18, Reuters reported that the G20, an international forum for governments and central bank governors from 19 countries and the European Union, called on the International Monetary Fund to examine the various macroeconomic effects of global stablecoins, including the issue of monetary sovereignty in member countries.
According to the report, the nations agreed that global acceptance of Stablecoins would cause a number of serious threats to public order and regulation.
“Such threats, including in particular those related to money laundering, illegal financing and consumer and investor protection, must be assessed and properly addressed before implementing these projects,” say G20 ministers.
Bank of Japan Governor Haruhiko Kuroda said the G20 summit will begin with a debate on stablecoin regulations – following proposals from global regulators such as the Financial Stability Board and the Task Force on Money Laundering.
“Some emerging countries are concerned about what could happen, stablecoins supported by a huge customer base have become widely used around the world […] But this is not just a problem for emerging economies. This may have a broader impact on monetary policy and financial system stability, “he said.
Technical Market Overview:
The ETH/USD pair is still trading out of the main ascending channel and below the short-term trendline resistance. Currently, bulls are trying to break through the trendline around the level of $173.44 and even manage to make a spike above the trendline with a top at the level of $175.76. Will that be enough to continue a rally higher or is it just another false breakout? The next few hours might give the answer to market participants. Please keep an eye at the level of $163.98 because it is the key short term technical support for bulls.
Weekly Pivot Points:
WR3 – $203.55
WR2 – $195.01
WR1 – $184.09
Weekly Pivot – $175.68
WS1 – $163.10
WS2 – $154.16
WS3 – $142.73
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
