Technical Analysis of ETH/USD for March 24, 2021

Crypto Industry News:

There are reports in India that the local government is considering blocking the IP addresses of cryptocurrency exchanges. Despite reports of bans, many in the Indian cryptocurrency community believe that authorities will not impose a total ban on cryptocurrencies.

As reported by Business Standard, "India is considering blocking the Internet Protocol (IP) addresses of companies / exchanges where cryptocurrency trading takes place." BE Information is based on an anonymous "knowledge source". This measure, if implemented, will confirm the government's efforts to ban cryptocurrencies.

India's Finance Minister Nirmala Sitharaman recently said a cabinet memo on cryptocurrency laws is being finalized.

The Indian government has previously attempted to block the IP addresses of adult websites and hundreds of Chinese apps, according to the publication. At the same time, it was also noticed that people could still gain access to sites through virtual private networks (VPNs).

Earlier this month, India's Finance Minister said there would "be a very calibrated stance" on cryptocurrencies. He then insisted that the government "does not exclude all options". These statements gave the Indian crypto community hope that India would regulate the crypto industry rather than impose a total ban.

Technical Market Outlook:

The ETH/USD pair has been consolidating in a narrow range between the levels of $1,648 - $1,718 after the drop below the key short-term technical support located at the level of $1,721. The next target for bears is the 50% Fibonacci retracement level located at $1,618. The momentum is weak and negative, so the bears had hit the intraday technical support at the level of $1,648 already and keep pushing lower. Please notice, the violation of 50% Fibonacci retracement opens the road towards 61% retracement located at $1,541. Only a strong breakout back above $1,729 would terminate the sell-off and put the bulls back into control again.

Weekly Pivot Points:

WR3 - $2,051

WR2 - $1,965

WR1 - $1,890

Weekly Pivot - $1,807

WS1 - $1,707

WS2 - $1,636

WS3 - $1,545

Trading Recommendations:

The longer term up trend on the Ethereum continues despite the local counter-trend corrections. When the correction is terminated, the next long term target for ETH/USD is seen at the level of $2,100. The key long term technical support is seen at the level of $1,412, so only a weekly candle close below this level will invalidate the bullish scenario.

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The material has been provided by InstaForex Company - www.instaforex.com

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