Cryptocurrency Analysis

[IFX_Selena]

Technical Analysis of ETH/USD for 26 November 2020

Crypto Industry Outlook:
After failing to obtain SEC approval in 2019, the investment management firm finally gets Bitcoin ETP to market. VanEck spent most of 2019 unsuccessfully lobbying for the approval of its ETF, approved by the US Securities and Exchange Commission, the VanEck investment management fund finally launched a Bitcoin-based exchange product.

However, according to a November 25 tweet from the company's digital asset strategist Gabor Gurbacs, the product is a stock exchange, not an ETF, and is not listed on the US stock exchange, but on Germany's Deutsche Borse Xetra. Rather than being a mutual fund, the ETN is essentially a debt instrument that tracks the sometimes hard-to-reach market, which in this case is Bitcoin.

VanEck Vector Bitcoin ETN is 100% physical Bitcoin backed and offers investors direct exposure to the Bitcoin market in the trusted format of other regulated, listed products. Product manager Dominik Poiger explained:

"Our ETN Bitcoin is fully secured. This means that the money invested in the ETN is actually used to buy Bitcoin. Thus, each ETN represents a certain amount of Bitcoin."

The bitcoin will be deposited and stored in the freezer by the Liechtenstein-based cryptocurrency of the Frick bank.

VanEck went to great lengths to convince the SEC to approve its Bitcoin ETF through the first part of 2019, but to no avail. The Chicago Board Options Exchange withdrew the proposal in September, one month before its final decision. The company recently released research showing Bitcoin is less volatile than many stocks traded on the S&P 500.


Technical Market Outlook:
The ETH/USD pair has started the widely expected correction. After the yearly high was made at the level of $620.52, the market broken out of the acceleration channel and entered the main ascending channel. Nevertheless, it looks like this channel will be broken as well as the Ethereum already probe into the lows of the level of $502.96. The next target for bears is seen at the level of $500. Below this level is the wall of support and the levels of support are: $487.79, $476.29, $472.42, $459.44 and $438.00. Please notice the weak and negative momentum supports the short-term bearish outlook.

Weekly Pivot Points:
WR3 - $774.30
WR2 - $671.20
WR1 - $638.87

Weekly Pivot - $538.52
WS1 - $503.53
WS2 - $403.18
WS3 - $366.96


Trading Recommendations:
The up trend on the Ethereum continues and the next long term target for ETH/USD is seen at the level of $600, so any correction or local pull-back should be used to open the buy orders. Moreover, the bulls has hit the 38% Fibonacci retracement located at the level of $587.87. This scenario is valid as long as the level of $360 is broken.






Performed by Sebastian Seliga
Analytical expert
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