Technical Analysis of ETH/USD for April 21, 2021

Crypto Industry News:

The Facebook-backed digital currency project Diem could launch its first stablecoin as early as 2021 as a small-scale pilot project, according to an anonymous source.

A source cited in a media report said the Swiss nonprofit The Diem Association still intends to launch a US dollar-backed stablecoin pilot later this year.

In November 2020, the association already announced its plans to limit the introduction of a US dollar-linked stablecoin in January, but months have passed and the currency has yet to see the light of day.

Stablecoin Diem is a greatly scaled down and revised version of Facebook's original vision for a global digital currency, native to its platform, that would be tied to a basket of multiple fiat currencies. In addition to ditching the Libra name, commentators pointed to profound changes to the developing Diam project in response to striking backlash from global regulators and nation states.

Technical Market Outlook:

The ETH/USD pair has retraced more then 61% of the last wave down and made a local high at the level of $2,359 during the bounce. This level has been used to test the short-term lower channel line for a test and the higher prices were rejected as the Pin Bar candlestick had been made. The market reversed towards the local technical support located at the level of $2,274 and is trading around this level currently. Any violation of this level would lead to another wave down towards the level of $2,201 and $2,098.

Weekly Pivot Points:

WR3 - $3,314

WR2 - $2,2828

WR1 - $2,524

Weekly Pivot - $2,211

WS1 - $1,914

WS2 - $1,617

WS3 - $1,300

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 $2,500. The key long term technical support is seen at the level of $2,000, 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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