13.05.202008:01 Forex Analysis & Reviews: Technical Analysis of ETH/USD for May 13, 2020:

Crypto Industry News:

The Vietnamese Ministry of Finance has agreed to set up a research group responsible for researching and presenting policy proposals on cryptocurrencies and virtual assets. The group will consist of nine members led by the vice-chairman of the State Securities Commission, Phama Hong Son.

Other members are other representatives of the national securities regulator, the General Tax Department, the National Institute of Finance of Vietnam, Vietnam Customs and the Department of Banking and Financial Institutions of the National Bank of Vietnam.

The research group will help the country keep abreast of news in the rapidly growing Blockchain sector, enabling Vietnam to respond to regulatory challenges with greater efficiency.

In August 2017, the Prime Minister of Vietnam approved a plan to supervise the development of the legal framework for cryptocurrencies until August 2018, indicating that cryptographic assets will be legally recognized in this country.

However, on April 11, 2018, Bitcoin was banned as a means of payment - meaning that although individuals and companies still had the freedom to invest in crypto, virtual currencies cannot be used to buy goods or services.

Two days later, a directive was issued ordering credit institutions to limit the provision of virtual currency services to protect against the risk of money laundering. Vietnam has informally updated its regulations since the introduction of directives two years ago, with the current lack of a regulatory framework for cryptocurrency exchanges in that country.

Technical Market Outlook:

The ETH/USD pair has bounced from the level of $177.50 (low was made at $174.72) after the Pin Bar candlestick pattern was made at the end of the move. The pair keeps trading inside of a narrow zone as the volatility is now limited. The momentum remains weak and negative, so the next target for bears is seen at the level of $164.45. The immediate technical resistance is seen at the level of $188.86 and $193.78. Please bear in mind, that there is only 13 hours left to the halving, which is highly anticipated event for all cryptoenthusiasts.

Weekly Pivot Points:

WR3 - $241.59

WR2 - $228.78

WR1 - $204.66

Weekly Pivot - $191.03

WS1 - $168.45

WS2 - $154.83

WS3 - $130.49

Trading Recommendations:

The fear of the second wave of coronavirus consequences has decreased among the global investors on the financial markets, nevertheless the global investors are not so keen to invest in cryptocurrency, because they are being perceived as risky assets. 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.