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Technical analysis of ETH/USD for Sept 4, 2019
Crypto Industry News:
The Dutch Central Bank today announced that it will start regulating companies offering cryptocurrency services from January 10, 2020.
According to financial media, De Nederlandsche Bank explained that relevant companies in this sector must register with the institution if they want to continue their activities.
“Specifically, companies offering cryptocurrency and regular money exchange services as well as cryptocurrency wallet providers must register with De Nederlandsche Bank”- we read in the official statement of the bank.
Dutch ministers urged the government of the country to regulate cryptocurrencies and some cash payments because of concerns about money laundering. In January, Dutch Finance Minister Wopke Hoekstra received an official recommendation from the Dutch Financial Markets Authority and De Nederlandsche Bank that a cryptocurrency service licensing system should be introduced.
Technical Market Overview:
The ETH/USD pair is still trading below the short-term descending trendline, so only an impulsive move above the trendline can give a signal for the market participants to resume the uptrend on this pair. The breakout level would be around the level of $182.00 which is a technical resistance as well. 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 below the trendline. If, however, the level of $182.00 is clearly violated, the next target for bulls is seen at the level of $187.04 and the uptrend is resumed then.
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
