Technical Analysis of ETH/USD for October 29, 2020

Crypto Industry Outlook:

Colombia now has the highest number of Bitomats in Latin America. According to CoinATMRadar, Bogota, the country's capital, has 34, followed by Medellin with 11, and Bucaramanga and Cali with 4. Other cities with at least one are Barranquilla, Cartagena, Cucuta, La Hormiga and Pereira.

Until recently, countries like Venezuela and Argentina were more frequently discussed as crypto hotspots in terms of regional adoption due to factors such as political and economic turmoil. Colombia, however, took important steps towards regulating the country's crypto realm, and its government approved a pilot program to test crypto transactions in September. The pilot, which runs in the recently established regulatory sandbox, will run until December 31.

In September, Colombia's Ministry of Information Technology and Communications, or MinTIC, published a draft of a guide urging the public sector to adopt blockchain technology, including crypto payments.

Data released in August by Statista showed that cryptocurrency adoption hit double-digit values in Brazil, Colombia, Argentina, Mexico and Chile.

Technical Market Outlook:

The ETH/USD pair has reversed the rally after the short-term trend line resistance had been hit around the level of $407.03. The bears took control over the market and push the price back under $400. Moreover, a new loacal low was made at the level of $379.74, which is below the 61% Fibonacci retracement of the lat wave up. The next target is seen at the level of $375.52 and $369.37. Weak and negative momentum supports the short-term bearish outlook.

Weekly Pivot Points:

WR3 - $490.39

WR2 - $455.51

WR1 - $435.03

Weekly Pivot - $398.88

WS1 - $379.21

WS2 - $342.87

WS3 - $323.39

Trading Recommendations:

The up trend on the Ethereum continues and the next long term target for ETH/USD is seen at the level of $500, so any correction or local pull-back should be used to open the buy orders. This scenario is valid as long as the level of $309.61 is broken.

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