27.05.202008:29 Forex Analysis & Reviews: Technical Analysis of ETH/USD for May 27, 2020:

Crypto Industry News:

On May 18, the Ministry of Digital Transformation of Ukraine published a new draft law "On Virtual Assets", which aims to determine the legal status of cryptographic assets, rules for their circulation and issue in the country. The current version of the proposal is not final and is open to dialogue with the cryptographic community until June 5, 2020.

According to one of the co-authors of the new bill, the main goal of the initiative is to enable local cryptographic companies, such as stock exchanges, to open bank accounts. Michael Chobanian, president of the Bitcoin Ukraine association, an organization that co-authored the new account along with state authorities, law firms and industry entities, says cryptocurrency exchanges still can't create a bank account in Ukraine. The proposed bill aims to lead the cryptographic industry out of the "gray zone" and bring legal presence to companies in Ukraine. Pursuant to the Act, virtual asset service providers, i.e. cryptographic exchanges, issuers and users.

However, unblocking the cryptographic industry in Ukraine has some costs. Earlier this week, Andriy Khavryuchenko, founder of the DevNull.AI programming company, wrote on Twitter that the Ukrainian project "On Virtual Assets" will make all cryptocurrency wallets in Ukraine illegal unless they register with the Ministry. According to the bill, local companies must register to legally conduct fiat-to-crypto operations in Ukraine.

Ukraine is considering the law governing cryptographic assets for at least four years. The first reports of Ukrainian cryptography regulations appeared at the end of 2015, when the Verkhovna Rada of Ukraine announced plans to define the legal status of Bitcoin by January 2016. As in Russia, none of the existing legislative initiatives on cryptography has yet been adopted in Ukraine.

Technical Market Outlook:

The ETH/USD pair has bounced from the level of $195.94 which is a 38% Fibonacci retracement of the last wave down. The bulls are defending the blue trend line support and the target for them is seen at the level of $205.05 of higher at the level of $209.89. Any violation of the blue trend line will likely result in another wave down towards the levels of $193.78 and $188.86, so please keep an eye on current price developments around this levels .

Weekly Pivot Points:

WR3 - $234.40

WR2 - $228.76

WR1 - $216.85

Weekly Pivot - $204.00

WS1 - $192.21

WS2 - $178.64

WS3 - $166.85

Trading Recommendations:

The larger time frame trend on Ethereum remains down and as long as the level of $288 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred. The next key technical support is seen at the level of $174.82.