Technical Analysis of ETH/USD for December 28, 2020

Crypto Industry News:

The Israeli Tax Office (ITA) reportedly sent notifications to dozens of Israelis who own digital currencies, asking them to fully disclose their assets and tax them accordingly. In addition to sending letters to local residents, the tax authority also sent inquiries to cryptocurrency exchanges operating in Israel and abroad.

Reports of notices and inquiries sent by the ITA were preceded by speculation in the Israeli media that tax appraisers across the country were exerting "pressure on the digital currency market." However, as the media now reports, ITA wants to "obtain information about Israeli currency trading." Before sending notifications and inquiries to cryptocurrency exchanges, the Israeli tax office received "data on European funds and accounts held by Israelis."

Israel receives these data in accordance with the provisions of the "EU Common Reporting Standards (CRS) for the automatic exchange of financial information". It has reportedly been reported that the Israeli tax office has different arrangements with its counterpart in the United States, with additional information coming from the FATCA agreement, which transfers US IRS data to Israel.

Before the recent interest in taxing cryptocurrency holders, the ITA published its position on cryptocurrencies in 2018. According to a published document, Israeli "investors in digital currencies are subject to a 25% capital gains tax as long as their activities do not turn into a commercial venture". However, in the event that this becomes a commercial activity, "landlords will be charged a two-tier corporate or marginal tax according to their individual tax brackets."

Technical Market Outlook:

The BETH/USD pair continues the up trend and after the pull-back towards the level of $550 (low at the level of $553.51), the market bounces back up again. The recent high was made at the level of $726. There is no sign of a trend reversal and the next target for bulls is seen at the level of $745.60 (50% Fibonacci retracement on the weekly time frame chart). The intraday support is seen at the levels of $700 and $673. The strong and positive momentum supports the short-term bullish outlook for Ethereum.

Weekly Pivot Points:

WR3 - $907.99

WR2 - $803.63

WR1 - $751.04

Weekly Pivot - $647.44

WS1 - $590.99

WS2 - $493.57

WS3 - $441.00

Trading Recommendations:

The up trend on the Ethereum continues and the next long term target for ETH/USD is seen at the level of $800, 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. This scenario is valid as long as the level of $500 is broken.

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