Technical Analysis of ETH/USD for November 5, 2021

Crypto Industry News:

Paytm, India's leading digital payment company, said it would consider Bitcoin services if the national cryptocurrency legal framework was more defined.

In a television interview, Paytm's chief financial officer Madhur Deora stated that India's Bitcoin laws remain in a "gray area".

"Bitcoin is still in a gray regulatory zone, if not under a regulatory ban in India. [...] At the moment, Paytm is not engaging in Bitcoin. If it ever were to become fully legal in the country, there could of course be offers that we could start".

The Reserve Bank of India (RBI) initially banned the use of cryptocurrencies, however the decision was reversed by India's Supreme Court in March 2020. Since then, there has been little concrete action by the government or the RBI over the cryptocurrency legislation.

Even though the government has considered cryptocurrency laws, the RBI is vehemently opposed to it and continues to push for a ban. Nirmala Sitharam, the country's finance minister, said that while the government "is not against cryptocurrencies," it will look at how they can help India's financial technology sector.

Technical Market Outlook

The ETH/USD pair has made a recent ATH at the level of $4,669 after the break out from the channel and is currently consolidating the recent gains in a narrow zone around the level of $4,600. The next target for bulls is 100% Fibonacci extension seen at the level of $4,717. The nearest technical support is seen at the level of $4,459 and the key short-term technical support is currently located at the level of $4,146. The larger time frame trend remains up and the outlook for the rest of the trading week is bullish. Please notice, the market conditions are going off the extremely overbought in the short-term.

Weekly Pivot Points:

WR3 - $5,137

WR2 - $4,787

WR1 - $4,556

Weekly Pivot - $4,216

WS1 - $3,997

WS2 - $3,650

WS3 - $3,426

Trading Outlook:

The next long-term target for ETH is seen at the level of $5,000. Nevertheless, in order to continue the long-term up trend, the price can not close below the technical support at the level of $2,906. 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. The level of $3,677 is the key mid-term technical support for bulls.

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

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