Technical Analysis of ETH/USD for December 16, 2020

Crypto Industry News:

Binance, the world's largest cryptocurrency exchange, has started shipping its physical Binance Visa cards in the European Economic Area. Coupled with the debut of its physical cards in the EEA region, Binance has also added Ethereum support to its cryptographic debit card, allowing customers to now pay with altcoin.

"Just move Ethereum to your card wallet and move it over other coins to make it your preferred means of payment" - writes Binance.

The physical Binance Visa card has a daily spending limit of 8,700 euros, while daily ATM withdrawals are 290 euros. According to the announcement, the cards offer up to 8% cashback and zero fees until 2021. Binance officially announced its cryptographic debit card in the EEA region in July 2020, initially offering Binance Visa virtual cards.

Since the Binance Visa Card plans were announced in April 2020, Binance has been actively promoting the new product. Following the card's introduction in the EEA, Binance announced its intention to expand worldwide and launch a cryptocurrency debit card in countries like Russia.

Technical Market Outlook:

The ETH/USD pair has retraced 61% of the last wave down and hit the level of $595.49 before the Bearish Engulfing pattern had been made. The market is still trading around this level as the consolidation continues. Please notice, the level of $587.87 is the 38% Fibonacci retracement on the weekly time frame as well. The momentum has increased as well and is strong and positive, so the bulls might attack the level of $600 again soon. The next technical resistance is seen at the level of $620.52 and the technical support is located at $558.85.

Weekly Pivot Points:

WR3 - $699.05

WR2 - $651.58

WR1 - $626.59

Weekly Pivot - $578.29

WS1 - $553.79

WS2 - $505.49

WS3 - $481.34

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. Nevertheless, the momentum has decreased recently on the lower time frames and volatility is not that great either. The bulls has hit the 38% Fibonacci retracement located at the level of $587.87 on the weekly time frame chart, but the current up trend is still active. This scenario is valid as long as the level of $360 is broken.

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