07.11.201909:34 Forex Analysis & Reviews: Technical analysis of ETH/USD for 07/11/2019

Crypto Industry News:

Chinese President Xi Jinping has credited Blockchain and cryptocurrencies, calling on the country to accelerate the adoption of Blockchain, said Galaxy Digital CEO Mike Novogratz. The investor delivered his speech at the Reuters Global Investment Outlook 2020 Summit in New York.

Michael Novogratz, founder of the cryptocurrency Galaxy Digital bank and avid Bitcoin supporter, believes that the announcement of the Chinese president at the end of October triggered the latest rise in the price of the largest cryptocurrency. By encouraging China to adopt Blockchain technology out of concern for the country, Xi "just made crypto and Blockchain" credible, "Novogratz said.

On October 24, Xi expressed his positive position on Blockchain technology at the Political Committee session on Blockchain technology trends. The president emphasized that the adoption of integrated Blockchain technologies is the key to promoting technological innovation and industry transformation.

Following the Chinese state publication, Beijing's positive position on Blockchain technology should not be interpreted as support for cryptocurrencies such as Bitcoin. Despite the agency's warning of "speculation," China took another step towards cryptocurrency on November 6, confirming that Bitcoin mining will not be an unwanted industry in the country.

The mood swift in China occurred a few months after the Chinese National Development and Reform Commission revealed its plan to eliminate cryptocurrency mining in that country.

While cryptocurrency trading in China is still formally banned, the Standing Committee of the 13th National People's Congress in China passed a new "cryptographic law" on October 26, which will come into force on January 1, 2020. The new rules set new standards for the use of cryptography and password management in-country and by default refer to cryptocurrency regulations.

Technical Overview:

The ETH/USD pair has tried to test the technical resistance zone located between the levels of $193.52 - $196.61 but failed after the Bearish Engulfing candlestick pattern was made. The market continues a corrective cycle with a low made at the level of $172.91, but as long as ETH/USD trades above the level of $163.11 there is still a chance for another impulsive wave up. The nearest technical resistance is seen at the level of $193.52 and the nearest technical support is seen at the level of $179.94. The key technical support is located at the level of $172.91.

Weekly Pivot Points:

WR3 - $203.38

WR2 - $197.53

WR1 - $186.87

Weekly Pivot - $181.92

WS1 - $171.26

WS2 - $165.71

WS3 - $155.07

Trading recommendations:

The best strategy in the current market conditions is to trade with the larger timeframe trend, which is still up. All the shorter timeframe moves are still being treated as a counter-trend correction inside of the uptrend. When the wave 2 corrective cycles are completed, the market might will ready for another impulsive wave up of a higher degree and uptrend continuation.