Technical Analysis of ETH/USD for December 7, 2020

Crypto Industry News:

The US Congress recently faced a new bill to regulate stablecoins. The law would require companies and service providers in the cryptocurrency market to obtain government approval before offering them to users. If they do not get approval and continue to work with them, the law will make this type of digital asset illegal. The bill presented to the US Congress reads as follows:

"It is illegal to issue stablecoins, products, provide related services or otherwise engage in any commercial activity..., including activity involving the use of stablecoins issued by others, is illegal without prior written consent."

Companies would need approval from various government agencies. Some of the institutions that permit the operation and provision of trading in this type of asset include the Board of Governors of the Federal Reserve System and others.

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. It moved below the level of $600 briefly during the weekend, but bounced back up towards the level of $610. 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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