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Technical analysis of Ethereum for 05.06.2019
Crypto Industry News:
The US regulatory body Commodity Futures Trading Commission (CFTC) is in talks with Facebook about the upcoming launch of stablecoin, cryptocurrency media report.
Referring to chairman J. Christopher Giancarlo, the publication revealed that Facebook is attempting to soften the regulatory landscape against the asset, now called GlobalCoin, which will allegedly come into use next year.
“We are very interested in understanding it better,” said Giancarlo, adding that there is no formal application for regulatory approval at this time.
Facebook has caused quite a stir around its unconfirmed GlobalCoin plans, and various sources are looking at the form of a global payment network covering both the social media platform and the sister companies Whatsapp and Instagram. Users will allegedly be able to send each other funds and make purchases in the application.
At the end of May, the media announced that Facebook executives were taking part in similar preliminary discussions with US Cryptocut and Coinbase exchanges on the introduction and potential liquidity solutions. Neither party has yet confirmed the plans that came to light through two anonymous sources.
Technical Market Overview:
The ETH/USD pair has made a new low on its way down. The level that was hit was the technical support at $239.03, but the low was made at the level of $234.01. This move down is still a part of the wave 4 which is a corrective cycle. It might terminate around the level of $228.89 and then it will be labeled as three waves correction ABC or it can continue to evolve into an ABCDE Triangle pattern. Please notice, the price is still trading below the short-term descending trend line resistance as well.
Weekly Pivot Points:
WR3 – $337.31
WR2 – $312.54
WR1 – $290.33
Weekly Pivot – $263.28
WS1 – $241.64
WS2 – $214.59
WS3 – $190.10
Trading Recommendations:
The best strategy in the current market conditions is to trade in the direction of the main trend, which is still up. All the local bounces and correction should be treated as another opportunity to open the buy orders for a better price. Please notice, the larger time frame trend is up and there are no signs of any trend reversal.
The material has been provided by InstaForex Company – www.instaforex.com
