Technical Analysis of ETH/USD for September 4, 2020

Crypto Industry News:

Swiss Zug, nicknamed "Crypto Valley" for its positive outlook on cryptocurrencies, will start allowing citizens to pay taxes using Bitcoin and Ethereum from next year. According to the media, tax settlement with cryptocurrency will be available to both companies and individuals up to the amount of CHF 100,000, i.e. over $ 109,600.

About 127,000 people live in the region, and they previously took steps to accept Bitcoin payments for selected government services. A new, much wider move to accept taxes on cryptocurrencies has been made possible by a partnership between the canton and the Zug-based crypto broker Bitcoin Suisse AG.

Bitcoin Suisse previously worked with the Swiss authorities in Zermatt to allow taxpayers in the region to use Bitcoin as a means of payment.

Bitcoin Suisse founder Niklas Nikolajsen told reporters that "there is almost nothing controversial in Bitcoin trading anymore. This is totally mainstream. "In his opinion, the strong increase in Bitcoin's value during the coronavirus pandemic is likely to strengthen the arguments for the resilience and longevity of the currency in a rapidly changing economic landscape.

The Swiss federal government recently rejected a request for 100 million francs from the Canton of Zug to help keep local crypto companies afloat.

Technical Market Outlook:

The ETH/USD pair has dropped to the level of $370.87 and this level is a part of the demand zone located between the levels of $362.80 - $375.62. The momentum is weak and negative, so the drop might extend even lower. The strong mid-term bearish signal would be a clear violation of the level of $362.80 and a sell-off continuation towards the level of $288,85. For now, the key intraday technical resistance is seen at the level of $407.03 and the technical support is still seen at the level of $362.80.

Weekly Pivot Points:

WR3 - $507.05

WR2 - $468.00

WR1 - $450.50

Weekly Pivot - $409.09

WS1 - $391.88

WS2 - $350.52

WS3 - $335.87

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. 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. The key mid-term technical support is seen at the level of $364.95.

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