Technical Analysis of ETH/USD for November 18, 2020

Crypto Industry Outlook:

According to the announcement, the National Bank of the Kyrgyz Republic is drafting a bill that would regulate the exchange of cryptocurrencies in consultation with industry stakeholders.

The bank said the bill will regulate the sale and purchase of cryptocurrencies in order to combat fraudulent cryptocurrency schemes and financial crimes, as well as protect the rights of consumers and investors.

Among the expected benefits of the upcoming regulations, the bank highlights the improved development of digital financial products, favorable conditions for the business environment, and even the possible introduction of a formal tax regime for digital assets.

However, the bank also expects cryptocurrency laws to be tied up with other hurdles, stating that the cross-border nature of many private cryptocurrencies will make it difficult for law enforcement without adequate monitoring and implementation infrastructure.

In fact, the bank says that due to the "lack of regulation and the chaotic nature of the cryptocurrency market," there is no hard data on the number of businesses that would fall under the new law.

According to the announcement, the bank expects the strict cryptocurrency regulations to provide more confidence to cryptocurrency businesses and attract investment without significantly impacting the government budget.

Technical Market Outlook:

The ETH/USD pair has broken the supply zone located between the levels of $459.44 - $476.29 and made a new high at the level of $493.74. The outlook remains bullish and the next target for bulls is the level of $500, but the recent Bearish Engulfing candlestick pattern might be a first sign of a warning. The nearest technical resistance is seen at the level of $487.70. Only if a daily candle closes below $360 level, then the bears will have full control of the market and might push the prices deeper below this level.

Weekly Pivot Points:

WR3 - $507.71

WR2 - $490.25

WR1 - $463.71

Weekly Pivot - $448.80

WS1 - $421.33

WS2 - $405.66

WS3 - $377.90

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 $360 is broken.

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