Technical Analysis of ETH/USD for September 8, 2021

Crypto Industry News:

While Bitcoin has become legal tender in El Salvador, another Central American country is making progress towards the free use of cryptocurrencies.

The Republic of Panama presented a draft law regulating cryptocurrencies with the aim of making the country "compatible with Blockchain, cryptocurrencies and the Internet."

Posting the news on Twitter, Panama Congressman Gabriel Silva stressed that the new legal initiative could generate thousands of jobs, create new sources of investment, and make the government "more transparent".

According to a draft bill released by Silva, the new rules aim to recognize cryptographic assets such as Bitcoin as an alternative global payment method for "any civil or commercial operation that is not prohibited by the legal system of the Republic of Panama." The authors of the act emphasized that cryptocurrencies enable quick and cheap payments, allowing the finalization of a financial transaction "regardless of the distance between the parties and the size of the transaction."

Unlike the Salvadoran government, which required local businesses to accept Bitcoins in exchange for goods or services, Panama's new cryptocurrency law is not intended to enforce mandatory Bitcoin acceptance. Instead, the law calls for freedom to use cryptocurrencies in Panama, the local television network Telemetro said.

Silva said the new bill was prepared in collaboration with Panamanian citizens and a multidisciplinary team made up of industry and technology experts. He noted that the regulations were drafted taking into account important guidelines provided by international organizations such as the Financial Action Task Force.

Technical Market Outlook

The ETH/USD pair has made a new swing high at the level of $4,029 and after a short period of consolidation the sell-off had begun. The price dropped to the level of $3,029 and then bounced back up to the level of $3,542. Currently, the price is hovering around this level, but the momentum is negative and weak, so another wave down should be expected. Please notice, that the long-term trend line support around the level of $3,150 was violated as well, which is not a good sign for the nearest future. The local technical support levels are: $3,337, $3,274, $3,185 and $3,122. The key technical support is still located at the level of $2,945.

Weekly Pivot Points:

WR3 - $5,271

WR2 - $4,663

WR1 - $4,404

Weekly Pivot - $3,750

WS1 - $3,518

WS2 - $2,851

WS3 - $2,607

Trading Outlook:

Ethereum have started the next wave up and violated the long-term target at the level of $3,550. The next long-term target for ETH is seen at the level of $4,394. Nevertheless, in order to continue the long-term up trend, the price can not break below the technical support at the level of $2,695. The level of $1,728 (61% Fibonacci retracement of the last big impulsive wave up) is still the key long-term technical support for bulls.

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The material has been provided by InstaForex Company - www.instaforex.com

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