Technical Analysis of ETH/USD for September 25, 2020

Crypto Industry News:

The Venezuelan government said it had legalized the mining of Bitcoin and altcoins - however, it added that miners would need to obtain licenses and consent to regulatory oversight.

According to media agency Criptonoticias, the government has issued an official decree stating that all cryptocurrency mining platform manufacturers, cryptocurrency farm builders and mining equipment importers will also be subject to random checks.

Citizens looking to mine Bitcoin and other cryptocurrencies will need to apply for a license from the National Crypto Asset and Related Activities Authority (SUNACRIP), which will oversee miners in the country.

SUNACRIP did not mention how much the license would cost, but added that pricing details would be made available through an online system that is currently under construction.

The regulator added that it will create a "comprehensive miners registry", an online database containing detailed information about individual miners detailing what kind of mining activity they conduct, whether they sell, manufacture, import or use cryptocurrency mining equipment.

The new rules don't stop there: SUNACRIP has created what it calls the National Digital Mining Pool, insisting that membership is "mandatory" - and non-compliance will be sanctioned. The regulator said the measures it had taken were part of an effort to "connect all Venezuelan miners".

According to figures published earlier this year by the Center for Alternative Finance at the University of Cambridge, Venezuela is the largest Bitcoin miner in Latin America and ranks among the world's top ten.

Technical Market Outlook:

The ETH/USD pair has bounced from the key technical support zone located between the levels of $305.20 - $321.95 and made a new local high at the level of $352.80, just below the technical resistance seen at the level of $355.24. The bounce had ended with a Shooting Star candlestick pattern, so the market might be ready to reverse and continue lower. Only a sustained breakout above the level of $352.80 would have change the current negative outlook for Ethereum.

Weekly Pivot Points:

WR3 - $426.36

WR2 - $409.08

WR1 - $387.32

Weekly Pivot - $370.45

WS1 - $348.67

WS2 - $331.18

WS3 - $309.49

Trading Recommendations:

The weekly and monthly time frame trend on the ETH/USD pair remains up and there are no signs of trend reversal, so buy orders are preferred in the mid-term. The key mid-term technical support, seen at the level of $364.95 had been violated, but all the dynamic corrections are still being used to buy the dips. The next mid-term target for bulls is seen at the level of $500.

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