Technical Analysis of ETH/USD for May 22, 2020:

Crypto Industry News:

The university, which trains officials of the Communist Party of China, has published a new book about cryptocurrencies.

According to a local publication, the Central Party School of the Communist Party of China - also known as the Central Party School - published a book as part of a series of books on breakthrough technologies. Previous entries in this series were "Dialogue with party leaders about AI" and "Dialogue with party leaders about Blockchain".

The goal of the book series is to provide party officials and the public with a source of information on emerging new technology trends. Chinese Central Bank directors, commercial banking directors and regulators were invited to write a prologue to a new published book on cryptography.

The book begins with the history and origin of fiat currency, and then gives an overview of the current credit currency system and its disadvantages. This leads to a section on cryptographic movement and the birth of Bitcoin.

The book further explores the nature and future of the digital currency and explains in detail what cryptographic exchanges and ICOs are. Discusses and analyzes regulatory problems regarding these new solutions.

The entire chapter of the book was distributed to the Digital Currencies of the Central Bank (CBDC). Explains the strategy behind digital Yuan and the impact it would have on the current payment system. A full comparative analysis of CBDC, Libra and stablecoins was included.

It warns against the dangers of super sovereign cryptocurrencies, such as Libra, questioning the monetary sovereignty of countries with imperfect financial market infrastructure. Proposes regulatory measures to address these trends.

Technical Market Outlook:

The ETH/USD pair has extended the losses after the breakout from the Triangle pattern. Moreover, the bears has manage to break through the short-term trend line support as well ( marked in navy on chart) and below another trend line support as well (marked in brown on the chart). The local low was made at the level of $190 which is a technical support for the price. Any violation of this level will lead to the correction extension towards the level of $188.86 and $186.72. Please notice, that the momentum is decreasing as market is coming off from the overbought conditions.

Weekly Pivot Points:

WR3 - $259.01

WR2 - $231.70

WR1 - $222.59

Weekly Pivot - $197.56

WS1 - $188.48

WS2 - $163.94

WS3 - $154.56

Trading Recommendations:

The larger time frame trend on Ethereum remains down and as long as the level of $288 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred.

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