Technical Analysis of ETH/USD for December 8, 2020

Crypto Industry News:

According to the director of the European Central Bank, financial authorities in Europe may develop a research agenda for the digital Euro as early as next year.

Holger Neuhaus, Head of Market Innovation and Integration at the ECB, joined the Singapore FinTech Festival 2020 to discuss the global development of central banks' digital currencies, the CBDC. During an online discussion, Neuhaus said the ECB expects European financial authorities to assess whether they will launch the digital Euro initiative by mid-2021:

"In mid-2021, the Eurosystem will consider whether to launch a digital Euro project. However, I would like to emphasize that this would be a research phase and not a decision to implement. In fact, this would allow us [...] to come up with a real plan and identify what a digital Euro could be, what it might look like, how could they be implemented, if and when a political decision would be made" - he said.

Neuhaus stressed that the digital Euro would complement, not replace, cash or central bank deposits. He also noted that central bank digital money poses a major challenge when it comes to using CBDC abroad, especially with regard to the management of capital flows and the issue of relative remuneration.

As for CBDC in Europe, Neuhaus drew attention to the ECB's public consultation on the potential digital Euro. The consultation, which was published in mid-October 2020, aims to gather feedback from public and private stakeholders to assess whether Europe needs a digital Euro.

In November 2020, ECB President Christine Lagarde called on the bank to decide on the introduction of the digital Euro in January 2021.

Technical Market Outlook:

The ETH/USD pair has been trading below the short-term trend line since the yearly top at the level of $635.46 had been made on the 1st of December. It moved below the level of $600 briefly, but bounced back up towards the level of $610. The bulls tried to break through the trend line 4 time already, but no avail. The sentiment is still positive, so the bulls should continue the rally towards the higher levels as soon as possible. The nearest technical resistance is seen at the level of $620.52 and the nearest technical support is located at $558.85.

Weekly Pivot Points:

WR3 - $712.54

WR2 - $673.34

WR1 - $636.36

Weekly Pivot - $596.47

WS1 - $560.79

WS2 - $521.20

WS3 - $484.02

Trading Recommendations:

The up trend on the Ethereum continues and the next long term target for ETH/USD is seen at the level of $700, so any correction or local pull-back should be used to open the buy orders. Moreover, the bulls has hit the 38% Fibonacci retracement located at the level of $587.53 on the weekly time frame chart, but the current up trend is still valid. This scenario is valid as long as the level of $360 is broken.

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