Technical Analysis of ETH/USD for April 30, 2021

Crypto Industry News:

Binance's efforts to connect traditional markets with the cryptocurrency space in the form of fractionated exchange tokens caught the attention of the German financial regulator.

The Federal Financial Supervisory Authority, also known as BaFin, warned on Wednesday that the world's largest cryptocurrency exchange could face heavy fines for launching security tracking tokens without an accompanying prospectus for investors.

Binance launched fractional stock exchange tokens for Apple, MicroStrategy, and Microsoft on Monday, adding them to the tokens for Coinbase and Tesla that were launched earlier this month. The stock exchange hired German company CM-Equity AG to maintain its "underlying securities deposit portfolio," which Binance claims provides full financial support for the tokens.

The regulator said Binance's failure to provide a prospectus for any of the launched stock exchange tokens was a violation of European Union securities law and could result in a fine of € 5m ($ 6m) on Binance.

Technical Market Outlook:

The ETH/USD pair has been consolidating the recent gains around the level of $2,798. There is a Bearish Engulfing and Pin Bar candlestick patterns made at the top of this rally, so it might be a time for a local pull-back, but any further rally will lead to another wave up towards the round level of $3,000. The immediate technical support is located at $2,639. The momentum remains strong and positive, so the odds for another wave up are high. Only a sustained breakout below the $2,500 would change the short-term outlook from bullish to bearish.

Weekly Pivot Points:

WR3 - $3,085

WR2 - $2,863

WR1 - $2,509

Weekly Pivot - $2,289

WS1 - $1,926

WS2 - $1,691

WS3 - $1,326

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 $3,000. 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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