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Technical analysis of ETH/USD for Oct 4, 2019
Crypto Industry News:
Mark Branson, head of the Swiss financial regulator FINMA, said he was more worried about the dark corners of cryptocurrency than Facebook’s stablecoin Libra.
Reuters reported that Bronson is more distrustful of cryptographic projects that are developing outside official control than the Libra project, which he believes is “transparent.”
“I’m more worried about projects that develop somewhere in a dark corner of the financial system, spread to cyberspace and one day become too big to stop” – he added.
Branson explained that Libra will be subject to the same strict rules that apply to banks, in addition to strict anti-money laundering rules, and that Switzerland will do nothing to block the project by adding:
“We are not here to prevent such projects. We will respond to them with an open mind, with the attitude that the same risk requires the same principles. Our principles and standards are not negotiable.”
Technical Market Overview:
The ETH/USD pair has broken below the short-term trendline support located around the level of $175.00. Moreover, all of the technical supports located close to this level has been violated as well and the market made a new local low at the level of $168.57. In the case of another spike down, the nearest technical support is located at the level of $163.98 – $162.50. Please notice, that so far the move upward does not look like an impulsive wave, but more like a kind of a Zig-Zag pattern, which is corrective pattern.
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
