Cryptocurrency Analysis

[IFX_Selena]

Technical Analysis of ETH/USD for 24 June 2020

Crypto Industry News:
Former Deputy Chief of Vietnamese Criminal Police, Vu Hoang Kien, said campaigns to raise money for cryptocurrency companies are illegal in this country.

Kien warned Vietnamese citizens to remain vigilant and not get caught up in any form of investment in cryptocurrencies, no matter how high the profits are.

In addition to the risk of investing in such programs, he also emphasized that investments in cryptocurrencies and payments made using virtual currencies are not legally recognized in this country. Therefore, investing in or using cryptocurrencies will also mean breaking Vietnamese laws.

Despite the warnings, crypto investments are still underway in the country, said Nguyen Nam Hao from the Department of Corruption, Smuggling and Economic Crime Police. He also added that in order to limit fraud and minimize other negative effects of cryptocurrencies, Vietnam needs more stringent and detailed rules.

In August 2017, Vietnamese Prime Minister Nguyen Xuan Phuc ordered the Central Bank of Vietnam and the Ministry of Finance to review virtual currencies and establish a legal framework for regulating them.

However, the review did not result in benefits for cryptocurrencies. The central bank announced the following month that the use of Bitcoin and other cryptocurrencies is illegal in this country. In April 2018, cryptocurrencies were officially banned as means of payment for goods and services.


Technical Market Outlook:
The ETH/USD pair is testing the range zone upper line located at the level of $248.90 after the bounce from the technical support located at the level of $225.84. Momentum is now increasing, which help the bullish cause, bur despite the recent rally continuation, Ethereum is still trading below the key technical resistance seen at the level of $252.03. Moreover, any sustained violation of the nearest technical support located at the level of $238.68 might accelerate the drop towards the next support seen at the level of $235.42. The larger time frame trend remains up.

Weekly Pivot Points:
WR3 - $257.09
WR2 - $246.02
WR1 - $2437.53

Weekly Pivot - $227.45
WS1 - $218.65
WS2 - $207.59
WS3 - $198.98


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.







Performed by Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2020