Technical Analysis of ETH/USD for October 2, 2020

Crypto Industry News:

Venezuelan President Nicolas Maduro said his country's government now sees cryptocurrencies as a potential way to avoid sanctions. On September 29, Maduro introduced a new law to help the country overcome the impact of US sanctions.

As part of the project, Venezuela will check the possibility of using various cryptocurrencies in both domestic and foreign trade. Maduro argued that the new anti-sanction law covers both private and state-supported crypto initiatives such as the cryptocurrency linked to crude oil in Venezuela, Petro:

"The anti-sanction law is the first response [...] aimed at giving new strength to Petro and other domestic and global cryptocurrencies and, in domestic and foreign trade, so that all cryptocurrencies in the world, state and private, can be used. It is an important project that is under development ".

According to online reports, the new law is currently being examined by Venezuela's legislative body, the National Constitutional Assembly.

The latest news apparently shows that Venezuela's interest in cryptocurrencies is not limited to the domestic Petro crypto, which has been placed as a major tool to evade US sanctions.

Maduro's new words came shortly after the Venezuelan government issued an official regulatory framework for mining cryptocurrencies such as Bitcoin. On September 23, Venezuelan national oversight of crypto assets and related activities issued the first decree regulating all cryptocurrency mining activities, setting out specific requirements for miners, including such as the obligation to join a so-called "domestic production pool". Maduro did not support any cryptocurrencies other than the state-owned Petro.

At the end of 2019, the president of Venezuela announced that retirees and pensioners will receive Christmas bonuses in Petro. In late 2018, the Venezuelan government converted the monthly pensioners' bonus into Petro.

Petro, officially introduced in February 2018, has become the world's first domestic cryptocurrency to be fired in oil. The coin is supposed to attract foreign investment as well as avoid sanctions from the US government. However, the token is not available for purchase outside of Venezuela.

Technical Market Outlook:

Despite the fact that the 61% Fibonacci retracement levels has been broken, the ETH/USD pair has reversed all the gains and made fresh local low at the level of $340.29 (at the time of writing the article). The bears are now in control over the Ethereum market and the next target for them is seen at the level of $332.38 and $321.95. Please notice, that only a clear and sustained violation of the demand zone located between the levels of $321.95 - $305.20 will open the road towards the key mid-term technical support located at the level of $288.85.

Weekly Pivot Points:

WR3 - $446.64

WR2 - $410.95

WR1 - $384.24

Weekly Pivot - $347.99

WS1 - $319.88

WS2 -$284.46

WS3 - $256.92

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 is currently seen at the level of $305.20 - $321.95, so 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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The material has been provided by InstaForex Company - www.instaforex.com