Crypto Industry News:
Jon Cuncliffe, deputy governor of the financial stability of the British central bank Bank of England (BoE), warned that the emergence of a cryptocurrency economy could weaken or eliminate the issuance of bank loans.
In a speech at the London School of Economics, Cunliffe predicted that the integration of stablecoins on social media platforms could lead to people putting most of their money currently stored in banks into crypto wallets, warning:
"In such a world, and depending on how and whether stablecoins have been secured by other financial assets, the supply of credit to the real economy through the banking system may weaken or even disappear. This would be a change with deep economic consequences."
Cunliffe also stated that virtual currencies pose very important questions to the UK government, regulators and the Bank of England. Cincliffe called on regulators and central banks to prepare for the unique challenges of the emerging cryptocurrency ecosystem before it becomes systemically important.
Technical Market Overview:
Ethereum stays below the short-term trendline resistance and is keeps trading in a narrow range located between the levels of $212.48 - $235.42. The downward momentum is decreasing, but is still weak and negative, so another wave down can occur soon. The next target for bears is seen at the level of $200 and below at $196.61.
Weekly Pivot Points:
WR3 - $315.76
WR2 - $294.92
WR1 - $247.66
Weekly Pivot - $227.96
WS1 - $180.28
WS2 - $159.27
WS3 - $113.10
Trading Recommendations:
The larger timeframe wave 2 corrective cycles are completed at the level of $115.05, so the market might be ready for another impulsive wave up of a higher degree and uptrend continuation. This strategy is valid as long as the level of $146.94 is not violated. The current move up might be a wave 3 in developing in the overall long-term Elliott wave scenario and so far the top at the level of $288.01 might be wave 1 of the overall wave 3.
