Technical Analysis of ETH/USD for October 22, 2020

Crypto Industry News:

Line, a Tokyo-based subsidiary of South Korean company Naver, is building a platform to expand central banks' digital currencies, South Korean news agency Chosun Ilbo said. Sources familiar with the case have reportedly told Chosun Ilbo that Line aims to support the development of so-called "adapted CBDC".

According to the report, the communications company is discussing the application of its blockchain-based CBDC platform with several central banks in major Asian countries. Line directors said they could not reveal which countries are considering using the platform.

A Line spokesman said the company's goal is:

: (...) To provide a blockchain platform that is suitable for CBDC based on Line Blockchain. "

Line is actively exploring the cryptocurrency and blockchain industry. In August 2020, it launched a blockchain development platform for decentralized applications and services, and a digital asset portfolio called Bitmax. Earlier this year, Line's cryptocurrency subsidiary, LVC Corporation, began trading its proprietary cryptocurrency (LN) link in Japan.

A number of Asian countries are planning to introduce CBDC. On October 9, Japan's central bank officially announced that it will begin reviewing the CBDC concept in 2021. On October 7, the South Korean central bank reportedly announced that it would begin the distribution phase of its CBDC pilot program next year.

Technical Market Outlook:

The ETH/USD pair has been seen rallying to the level of $400 and this is the new swing high. The nearest technical resistance is seen at the level of $407.70 and at the swing top at $414.11. On the other hand, the nearest technical support is seen at the level of $389.90. If this level is clearly violated, then the correction might extend towards the level of $383.32 and below. Please notice the overbought market conditions.

Weekly Pivot Points:

WR3 - $424.52

WR2 - $408.88

WR1 - $391.97

Weekly Pivot - $376.47

WS1 - $357.63

WS2 - $341.22

WS3 - $328.22

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. Moreover, bulls had bounced from the weekly trend line support last week and now are away from it. 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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