Technical Analysis of ETH/USD for December 9, 2020

Crypto Industry News:

Digital asset regulation has been a hot topic in 2020 and is showing no sign of cooling off. The recent G7 meeting showed that the sector faces a continuing need for regulation.

In addition to discussing COVID-19 and economic issues, the group "also discussed current responses to the changing landscape of cryptographic and other digital assets and the work of national authorities to prevent their misuse for malicious purposes and illegal activities."

"There is strong support throughout the G7 for the need to regulate digital currencies. Ministers and governors reaffirmed their support for the G7 Joint Statement on digital payments issued in October," it read.

G7 members - as well as the International Monetary Fund, the Financial Stability Board and World Bank leaders - attended the meeting chaired by Steve Mnuchin, US Treasury Secretary, the statement read.

In recent months, regulators have increased their involvement in the cryptocurrency sector. The US Department of Justice, in particular, has appeared in numerous headlines. One of the biggest headlines of the year included the DoJ and the Commodity Futures Trading Commission, which chased the BitMEX crypto-native derivatives exchange for providing services to US clients.

Technical Market Outlook:

The ETH/USD pair has moved lower in a corrective slide towards the level of $548, which is the key short-term technical support for the price. If this level is violated, then the next important technical support is seen at $517.40 and $500. The momentum is now weak and negative, so the corrective cycle still have a room to go lower. Please notice, the market is finally starting to come off the extremely overbought levels as well.

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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