Technical Analysis of ETH/USD for January 5, 2021

Crypto Industry News:

Another Russian cryptocurrency expert has warned of the dangers of the national central bank's issuance of the so-called digital ruble, claiming that neither consumers nor banks are yet convinced of the idea of using fiat digital currency.

In a media interview, Viktor Dostov, president of the Russian Electronic Money and Remittances Association and head of the Center for Distributed Register Technology at St.Petersburg State University, said end-users would likely turn their heads away from ruble digital payment solutions.

Dostov believed that the digital currency of the Russian Central Bank (CBDC) would be "more convenient and cheaper" than existing payment platforms. But he added that "the attractiveness of switching to the digital ruble" for many other consumers would be "far from obvious".

Dostov stated that conventional alternatives issued by commercial banks have become easier than ever recently, thanks to the use of QR codes and contactless interfaces. He also expressed the opinion that commercial banks would probably be against the idea of sharing their (and their clients') transaction data directly with the central bank. Moreover, he said, ordinary citizens would probably be concerned that the massive adoption of the digital ruble would allow "full transparency of [Russian] payments to the state, creating a" centralized [...] database "of expenditure.

He argued that the financial sector "was still not convinced" of the necessity and advantages of CBDC, both for itself and for future customers and users. "

Technical Market Outlook:

The ETH/USD pair has been seen trying to rally again above the last swing high at the level of $1,156.10, but failed after the Bearish Engulfing candlestick pattern occurred on H4 time frame chart. The battle for $1,000 is still in progress between bulls and bears. The up trend is being continued and there is no sign of trend reversal. Moreover, the up trend is now going parabolic and the next mid-term target for bulls is seen at the level of $1,420. The nearest technical support is seen at the level of $1,000. Please notice, the level of $1,000 is very close to the 161% Fibonacci extension level of the main wave 1, located at $1,047.

Weekly Pivot Points:

WR3 - $1,394

WR2 - $1,185

WR1 - $1,086

Weekly Pivot - $847

WS1 - $791

WS2 - $545

WS3 - $496

Trading Recommendations:

The up trend on the Ethereum continues and the next long term target for ETH/USD is seen at the level of $1,420, so any correction or local pull-back should be used to open the buy orders. Please notice, the up trend starting to go vertical, so the volatility will be higher than average. The bullish scenario is valid as long as the level of $830 is broken.

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