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Technical analysis of ETH/USD for Sept 30, 2019
Crypto Industry News:
Mario Draghi, president of the European Central Bank (ECB), shared his views on stablecoins, the future of cryptographic assets and the possible digital form of the euro.
In a letter to European Parliament Member Eva Kaili, the President of the ECB noted that the European System of Central Banks (ESCB) closely monitors developments in the cryptocurrency industry.
“The ESCB is analyzing crypto-assets and stablecoins to understand their potential implications for monetary policy, payment security and efficiency and market infrastructure, and financial system stability,” he added.
Despite a positive approach to new technologies, Draghi apparently believes that stablecoins and cryptocurrencies are generally of little value.
“So far, stablecoins and crypto assets have had limited applications in these areas and have not been designed in a way that makes them suitable money substitutes,” he said.
Draghi added that due to continuous technological innovation and rapid evolution in the cryptocurrency industry, the ECB’s rating may be different in the future.
Technical Market Overview:
The ETH/USD pair keeps trading below the level of $176.66 which is the key short-term technical resistance level. Moreover, despite the clear bullish divergence between the momentum and the price, the bulls were unable to rally higher. The market ended up closed in a narrow range between the levels of $163.98 – $176.66 and that was the weekend range. The low for the wave (C) is now very near and it was tested once before, so in the case of a bearish breakout, this support might fail. The nearest technical support below the $151.30 is seen at the level of
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
