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Technical analysis of ETH/USD for Sept 24, 2019
Crypto Industry News:
Kyrgyzstan cut off the power to 45 cryptocurrency mining companies because they consumed more energy than a total of three local regions. Senior Energy Officer Aitmamat Nazarov warned that mining cryptocurrencies are not defined by Kyrgyz law, according to a local news agency.
According to Nazarov, 45 cryptocurrency miners consumed 136 megawatts of electricity, which is more than the amount consumed by three Kyrgyzstan regions: Issyk-Kul, Talas and Naryn. Kyrgyzstan has become a popular destination for global mining companies due to low energy prices.
In August, the country’s Ministry of Economy submitted a bill to introduce taxation on cryptocurrency mining – a move to increase revenues. Cryptocurrencies were banned in Kyrgyzstan in July 2014 after a national bank warned that using Bitcoin and other cryptocurrencies as a payment method is illegal.
Iran, which also cuts off electricity to local mining companies, has proposed the annual registration of cryptographic miners to regulate the industry.
Technical Market Overview:
The ETH/USD pair has hit the level of $200.17 which is the 38% Fibonacci retracement of the last wave up. The whole corrective cycle looks completed as there are visible three waves ABC, but in the case of another wave down the next target for bears is seen at the level of $196.61. Please notice, that after the corrective cycle in wave 4 is completed, there is still wave 5 to the upside needed to complete the overall impulsive cycle up.
Weekly Pivot Points:
WR3 – $261.09
WR2 – $242.26
WR1 – $225.12
Weekly Pivot – $205.85
WS1 – $188.31
WS2 – $169.05
WS3 – $152.55
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 lower wave 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 $202.59 and $238.68 to confirm the resumption of the uptrend.
The material has been provided by InstaForex Company – www.instaforex.com
