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Technical analysis of ETH/USD for Sept 2, 2019
Crypto Industry News:
Coincheck, Japan’s cryptocurrency market, has announced it is reducing the scope of leveraged trading options to comply with local regulations. In a blog post published today, the company said they were reducing the leverage available for margin trading from five to four times.
This move was a direct response to the best practices presented by the Japanese Virtual Currency Exchanges Association – or JVCEA – a dedicated self-regulatory body for the Japanese stock exchange industry.
As written in the blog, the changes should take effect from October 31. Coincheck calls on investors to cancel any planned margin calls and take some precautions.
Margin trading involves significant risk, and it has even been suggested that practice can transfer entire Bitcoin market rates. Nevertheless, this option is gaining popularity and new offers from players such as the Binance exchange are coming to the market.
Coincheck, which recovered after a gigantic $ 530 million hacker hack in January 2018, revealed last week that it is considering launching an additional IEO branch. Similar to ICO, IEO makes it easier to sell crowdsale tokens directly through the exchange without the need for an intermediary
Technical Market Overview:
The ETH/USD pair has been trading inside of the narrow range between the levels of $164.81 – $172.82 for all the weekend. Despite the fact, that the wave Z of the overall corrective cycle might have been completed already, the bulls are not showing any strength on the market yet, which is why the price is trading horizontally. Moreover, the price is still being closed inside of the short-term descending channel, so only an impulsive move out of the channel can give a signal for the market participants to resume the uptrend on this pair.
Weekly Pivot Points:
WR3 – $214.26
WR2 – $203.46
WR1 – $183.94
Weekly Pivot Point – $173.24
WS1 – $152.37
WS2 – $142.84
WS3 – $121.31
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 being treated as a correction inside of the uptrend. The current cycle is wave 2 of the higher degree and it might have been completed, so the uptrend should resume soon. The global investors are waiting for a breakout above the level of $238.68 to confirm the resumption of the uptrend.
The material has been provided by InstaForex Company – www.instaforex.com
