Technical Analysis of ETH/USD for March 31, 2021

Crypto Industry News:

British regulators have identified the stablecoin market as their main target as part of their efforts to create a legal framework for virtual currencies in the country.

John Glen, the UK finance minister, said stablecoins will be the main focus of the government's cryptocurrency regulatory activity. The politician provided the news at a conference hosted by City & Financial Global on Tuesday, Reuters reported.

For Glen, the UK's decision to prioritize stablecoins over regulating the wider financial market is driven by concerns over monopolies emerging in the market, based on the limited number of participants offering fiat cryptocurrency payment services.

"Some companies have the potential to dominate quickly and displace other players due to their ability to scale and connect to existing online services," Glen noted.

Indeed, the minister's argument reflects the views expressed by financial regulators against the Diem project. Originally referred to as Libra, regulators in various countries have identified Facebook's global presence as an important risk factor for sovereign monetary policy related to the planned project.

Diem, for his part, tried to soften these regulatory guidelines by making changes to the draft. However, it has not yet received the necessary regulatory approval to start rolling out stablecoin.

Glen's comments are another sign that the UK government is focusing on stablecoins as part of its efforts to promote cutting edge innovation in the fintech industry. All of this is happening in connection with the country's withdrawal from the European Union.

In November 2020, Rishi Sunak noted that Brexit was a turning point for the UK financial services industry. Meanwhile, Sunak revealed that the government will prioritize the use of cutting edge fintech innovations such as central bank digital currencies and stablecoins to prove that the country is keeping pace with the emerging digital economy.

Technical Market Outlook:

The ETH/USD pair has hit the 127% Fibonacci extension level located at $1,847 and keeps heading up. The next target for bulls is seen at the level of $1,888, which is the key short-term technical resistance before the ATH at $1,941. The immediate technical support is seen at the level of $1,811, but for now the market made an intraday low at the level of $1,786. The strong and positive momentum supports the short-term bullish outlook for ETH.

Weekly Pivot Points:

WR3 - $2,053

WR2 - $1,922

WR1 - $1,793

Weekly Pivot - $1,670

WS1 - $1,525

WS2 - $1,400

WS3 - $1,267

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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