Technical Analysis of ETH/USD for December 18, 2020

Crypto Industry News:

A country hailed as one of the most cryptocurrency-friendly in the European Union in 2020 has revoked the licenses of more than 1,000 crypto companies.

According to the Postimees news site, the Estonian Financial Intelligence Unit (FIU) has revoked the licenses of around 70% of the country's virtual currency companies this year. Veiko Tali, deputy secretary general of the Government Committee on the Prevention of Money Laundering and the Financing of Terrorism, said the remaining crypto firms also needed "close attention" given the potential risks:

Following these changes, the media said there are 400 cryptocurrency service providers in Estonia with the appropriate licenses. The financial supervision authority said that 900 such companies operated in the country last year.

Serious action took place in June when the FIU revoked the licenses of 500 crypto companies in response to the $ 220 billion money laundering scandal. Regulators withdrew the permits because crypto firms had failed to get started within six months of obtaining a license.

Technical Market Outlook:

The ETH/USD pair has been seen moving up along with Bitcoin and made a new swing high at the level of $673.52 (at the time of writing the article). The market has made a Pin Bar candle at the top of the rally at the H4 time frame chart, so now the local pull-back is in progress. The momentum has increased as well and is strong and positive, so the bulls might attack the level of $700 again soon. The next technical resistance is seen at the level of $673.52 and the technical support is located at $635.46 and $620.52.

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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