22.05.201907:50 Forex Analysis & Reviews: Technical analysis of Ethereum for 22.05.2019

Crypto Industry News:

The Japanese House of Representatives has taken over the new cryptographic regulation in the upper house of the national parliament, according to the Nikkei news agency. The lower house reportedly cryptographically amended the existing financial law of the Chamber of Councilors at a recent plenary session.

According to Nikkei, changes to two Japanese financial regulations - the Act on financial instruments and the stock exchange and the Payment Services Act - are aimed at strengthening local regulations regarding the process of trading in cryptocurrencies. The changes are reportedly expanding the regulation by adding provisions on cryptocurrency margin trading.

The new law also includes changing the terminology associated with cryptography, changing the term virtual currencies to "cryptographic assets".

Japanese legislators for the first time introduced crypto margin trading regulations in March 2019. The Japanese Cabinet has approved a draft of changes to the Japanese financial instruments and payment services regulations, limiting the leverage on the cryptocurrency deposit market by two to four times more than the initial deposit.

Technical Market Overview:

The ETH/USD pair still continues the wave 4 correction and the most likely pattern here is a Triangle pattern, which is very typical for this corrective cycle. After the corrective cycle in wave 4 is completed, there is still one more wave up missing in order to complete the whole impulsive wave. The local technical resistance is located at the level of $263.42 and the local technical support is seen at the level of $245.00. Please keep an eye on the short-term trend line dynamic support as any violation of this support might lead to sooner than expected down move towards the level of $226.17

Weekly Pivot Points:

WR3 - $390.48

WR2- $336.28

WR1 - $299.99

Weekly Pivot - $239.34

WS1 - $205.35

WS2 - $147.46

WS3 - $113.47

Trading Recommendations:

The best trading strategy in the current market conditions is to buy the local pull-back as wave 4 is in progress in anticipation of the wave 5 to the upside. It might take some time for the wave 4 to complete, so it does not have to be a day-trading strategy. Please pay attention to the technical support at the level of $226.17 as any violation of this level will accelerate the sell-off towards the next technical support at the level of $212.12.