Technical analysis of ETH/USD for 29.05.2019

Crypto Industry News:

The state of Montana in the USA has recognized the utility tokens and excluded them from state securities, adopting a new law this month. Law 584, entitled 'General Review of the Cryptocurrency Rules', was signed by Governor Montana, Steve Bullock.

The project, initiated by state representative Shane Morigeau, had its first reading in February 2019. The bill was adopted with 33 votes "for" up to 15 "against" and will come into force on July 1.

The new law defines a utility token as a digital unit that is created and registered on Blockchain. According to a further part of the definition, the token can be exchanged without the participation of a third party and it is issued in order to enable its owners to access the goods or services provided by the issuer without giving the holder any share in the issuer.

Technical Market Overview:

The ETH/USD pair is consolidating the recent gains in a narrow range between the levels of $278.14 - $263.42 as the market participants wait for the breakout. The next wave to unfold is still the wave (5) to the upside, but if the market will break below the level of $263.42 then the wave (4) correction might still be in progress and it will likely evolve into more complex and time-consuming pattern.

Weekly Pivot Points:

WR3 - $321.20

WR2 - $292.77

WR1 - $283.99

Weekly Pivot - $254.33

WS1 - $241.65

WS2 - $213.82

WS3 - $203.55

Trading Recommendations:

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. Please pay attention to the technical resistance at the level of $278.14 as any breakout above this level is bullish. On the other hand, any violation of the level of $226.17 will accelerate the sell-off towards the next technical support at the level of $212.12.

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The material has been provided by InstaForex Company - www.instaforex.com