Technical Analysis of ETH/USD for February 4, 2021

Crypto Industry News:

The first part of Swiss blockchain law, covering companies, entered into force on Monday. In September 2020, the country's parliament adopted the country's extended crypto and blockchain regulatory framework.

According to a Swissinfo report, implementing the new regulatory paradigm will help improve the burgeoning Swiss cryptocurrency and blockchain scene. Indeed, industry stakeholders in the country praised the extended financial and corporate reforms contained in the revised legislation passed by parliament in September 2020.

For Hans Kuhn, board member of the digital bank SEBA, blockchain law places Switzerland in the emerging digital economy. According to Kuhn, the regulated issuance of blockchain-based securities indicates that the country is focused on promoting digital innovation.

Also on Monday, Crypto Broker AG announced that it had obtained a license from the Swiss financial market regulator, FINMA. Thanks to this license, the brokerage company, which settled transactions worth more than $ 1 billion last year, can now offer its clients tokenized securities.

Crypto Broker AG is now joining companies such as SEBA and Sygum Bank as a FINMA license holder. As the second part of Swiss blockchain law is due to come into force this summer, companies will seek to gain a significant foothold in the asset exchange market for regulated trading in these cryptocurrencies.

Part two of the Swiss blockchain law will cover significant improvements to the country's financial market infrastructure. This part of the Act on will provide the legal basis for cryptocurrency trading as well as other crypto exchange operations.

Switzerland is now joining Liechtenstein as one of the few countries with a full spectrum cryptography and blockchain legislation that covers all major aspects of the industry. However, unlike the Swiss approach which changed the existing rules to fit the blockchain market, Liechtenstein created a new legal framework for its cryptocurrency and blockchain market.

Technical Market Outlook:

The ETH/USD pair has made a new all time high at the level of $1,693 (at the time of writing the article). The next target for bulls is seen at the level of $1,755 which is a 127% Fibonacci extension of the last wave up. The key technical support is located at the level of $1,414 (2017 high). The intraday support is located at $1,638. The long term up trend is still intact and there is no indication of trend reversal or termination.

Weekly Pivot Points:

WR3 - $1,679

WR2 - $1,589

WR1 - $1,419

Weekly Pivot - $1,318

WS1 - $1,150

WS2 - $1,040

WS3 - $882

Trading Recommendations:

The up trend on the Ethereum continues and the next long term target for ETH/USD is seen at the level of $2,000, 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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The material has been provided by InstaForex Company - www.instaforex.com

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