05.09.201907:47 Forex Analysis & Reviews: Technical analysis of ETH/USD for 05/09/2019

Crypto Industry News:

Christine Lagarde, candidate for president of the European Central Bank (ECB) and head of the International Monetary Fund (IMF) said that central banks and financial regulators should protect consumers, but also be open to innovation such as cryptocurrencies.

During the opening statement, Lagarde told the European Parliament's Committee on Economic and Monetary Affairs that central banks and financial regulators should be open to the opportunities of change.

"For new technologies - including digital currencies - this means paying attention to the risks of financial stability, privacy or criminal activity and ensuring that regulations are in place to focus technology on the public good. But it also means recognizing the wider social benefits of innovation and enabling them to develop, "she said.

She also promised that if she became President of the ECB, her priorities would be involved in the institution's mandate and agility, social inclusion, and diversity. All this while ensuring that institutions quickly adapt to the rapidly changing environment.

In February, Lagarde said that cryptocurrency regulation is "inevitable" and necessary at the international level. In April, she also said that Blockchain innovators "shake the traditional financial world" and have a clear impact on current players.

Technical Market Overview:

The ETH/USD pair is still has hit and reversed from the short-term descending trendline around the level of $182.00, so only an impulsive move above the trendline can give a signal for the market participants to resume the uptrend on this pair. The price went down towards the technical support located at the level of $172.82 and is currently testing it from above. Despite the fact, that the wave Z of the overall corrective cycle might have been completed already, the bulls are not showing any strength on the market yet, which is why the price is trading below the trendline. If, however, the level of $182.00 is clearly violated, the next target for bulls is seen at the level of $187.04 and the uptrend is resumed then.

Weekly Pivot Points:

WR3 - $214.26

WR2 - $203.46

WR1 - $183.94

Weekly Pivot Point - $173.24

WS1 - $152.37

WS2 - $142.84

WS3 - $121.31

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 being treated as a correction inside of the uptrend. The current cycle is wave 2 of the higher degree and it might have been completed, so the uptrend should resume soon. The global investors are waiting for a breakout above the level of $238.68 to confirm the resumption of the uptrend.