Technical Analysis of ETH/USD for April 6, 2021

Crypto Industry News:

According to the official announcement, the Japanese central bank has launched a review of the concept of its digital currency. After initial preparations to test the technical feasibility of CBDC's core functions in early 2021, the Bank of Japan begins testing the CBDC in a first phase today. In it, the bank plans to develop a test environment for the CBDC system and conduct experiments in the basic functions related to payments, issuing, distribution and buyout of CBDC.

As announced, this phase is to be completed by March 2022.

The BoJ originally announced plans to test CBDC in October 2021. The bank stressed that although "there is no plan to issue CBDCs" from the point of view of ensuring stability and efficiency in the overall payment and settlement systems, it is still important to prepare for "circumstantial changes in an appropriate manner".

In line with the original design of the CBDC experiment, the bank expects to start a CBDC pilot program with payment service providers and end users after the second testing phase is completed. In this phase, additional CBDC functions will be implemented in the test environment developed in the first phase, where they will determine their feasibility.

Technical Market Outlook:

The ETH/USD pair has hit the 261% Fibonacci extension located at the level of $2,149 during the early Tuesday trading hours, so the up trend is still in progress. The local low was made at the level of $1,977, so it will now act as a technical support. The momentum is strong and positive and the market conditions are not overbought yet. The next target for bulls is located at the level of $2,200. The nearest technical support is seen at the level of $2,090.

Weekly Pivot Points:

WR3 - $2,774

WR2 - $2,442

WR1 - $2,286

Weekly Pivot - $1,965

WS1 - $1,803

WS2 - $1,504

WS3 - $1,345

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 $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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