Technical analysis of Ethereum for 20.05.2019
The wave 4 cycle is still in progress.
Crypto Industry News:
The largest Russian bank, Sberbank, demanded from customers to provide information about their revenues from cryptocurrencies, according to the financial media.
Co-founder of the cryptocurrency trading platform Toxenbox.io, Vladimir Smerkis, told media that a client had received a letter from Sberbank demanding disclosure of his cryptographic income. The letter was based on Federal Law 115 “On combating money laundering and financing of terrorism”. The client has reportedly already informed the bank about his revenues from trading in cryptocurrencies.
In particular, Sberbank wanted to know the cryptographic address of the client’s portfolio, which mining equipment the customer uses (including the model and parameters of the mining farm) and hash rate indicators. The bank also asked for documents confirming the ownership or lease of mining equipment and the premises where the farms are located.
“We are very worried about how Sberbank can refer to terms that do not yet exist in Russian law” – Smerkis said.
The founder and director of the regulated decentralized Tokenomica exchange, Artem Tolkachev, replied that this is not a new type of demand, saying that Sberbank “operates under the regulatory framework for the handling of cash. It is, therefore, a way of legally entering revenues from cryptocurrency into circulation”.
Technical Market Overview:
The ETH/USD pair is still making the wave 4 correction despite the recent bounce from the level of $226.10. The current corrective pattern is starting to look like a Triangle pattern, which is very typical for this correction. After the corrective cycle in wave 4 is completed, there is still one more wave up missing in order to complete the impulsive wave. The local technical resistance is located at the level of $265.35 and the local technical support is seen at the level of $245.00.
Weekly Pivot Points:
WR3 – $10,110
WR1 – $8,627
Weekly Pivot – $7,705
WS1 – $7,135
WS2 – $6,315
WS3 – $5,743
The best trading strategy in the current market conditions is to buy the local pull-back as wave 4 is in progress in anticipation of the wave 5 to the upside. It might take some time for the wave 4 to complete, so it does not have to be a day-trading strategy. Please pay attention to the technical support at the level of $226.17 as any violation of this level will accelerate the sell-off towards the next technical support at the level of $212.12.
The material has been provided by InstaForex Company – www.instaforex.com