Technical Analysis of ETH/USD for November 13, 2020

Crypto Industry Outlook:

Russia's massive oversight of cryptocurrency transactions seems to have one key downside. Namely, it seems that criminals who use digital resources to carry out illegal transactions do not bear any responsibility.

On Thursday, Russia's Ministry of Finance proposed new changes to the country's cryptocurrency laws to clarify the rules on tax evasion. Under the proposed guidelines, Russians face up to three years in prison for failing to report, at least twice in three years, a transaction worth 45 million rubles ($ 583,000) or more.

Earlier, the Ministry of Finance's draft talked about a three-year prison sentence for anyone who did not report a transaction over 1 million rubles ($ 13,000). Citizens must also report transactions and wallet amounts in excess of 600,000 rubles ($ 7,700) in a calendar year. Failure to register on time could result in a fine of 50,000 rubles ($ 640).

Mikhail Uspensky, a consultant for the Russian law firm Taxology, says the ministry's new guidelines also ignore the so-called "gray cryptocurrency exchanges" that account for the majority of darknet transactions.

"It was decided not to impose criminal liability on them, and the main risk of criminal proceedings should be transferred to ordinary cryptocurrency owners," Uspensky told the Russian media RBC.

Russia's crackdown on cryptocurrency holders is taking place at a time when policymakers are seriously considering the benefits of a central bank's digital currency. The Bank of Russia is expanding its efforts to understand CBDC in the aftermath of the Covid-19 pandemic, which had a destabilizing impact on monetary policy.

Technical Market Outlook:

The ETH/USD pair has hit the level of $475.58 after the triangle breakout, so the bullish pressure is still present. Nevertheless, the price got back to the old supply zone quickly and now is consolidating inside of this zone. The level of $424.65 will now provide the intraday support and the level of $400 will now act as a key technical support. The next target for bulls is seen at the swing high at $466.36 and then $500. Only if a daily candle closes below $360 level, then the bears will have full control of the market.

Weekly Pivot Points:

WR3 - $594.51

WR2 - $529.18

WR1 - $494.37

Weekly Pivot - $431.37

WS1 - $395.52

WS2 - $336.56

WS3 - $301.67

Trading Recommendations:

The up trend on the Ethereum continues and the next long term target for ETH/USD is seen at the level of $500, so any correction or local pull-back should be used to open the buy orders. This scenario is valid as long as the level of $309.61 is broken.

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