Technical analysis of ETH/USD for 25/02/2020:

By | February 25, 2020
InstaForex
Technical analysis of ETH/USD for 25/02/2020:

Relevance up to 02:00 2020-02-26 UTC–8

Crypto Industry News:

Sarah John, the chief treasurer of the Bank of England (BoE), expressed opinions on digital currencies issued by the state, according to an article published by financial media. She called on other central banks to consider developing a central bank cryptocurrency in response to recent movements of private companies in the digital payments sector.

John said it was “really important” to consider central banks to think of “central bank digital currencies” as “options” in response to the efforts of large technology companies to develop stablecoins.

A BoE official warned that inaction could cause regulators to be forced to catch up with private companies in the digital payments arena, claiming that “it is crucial that central banks” consider whether the public or private sector would be the best to provide digital currencies in the future “.

John’s statements appear a few days after Randal Quarles, chairman of the Financial Stability Board (FSB), urged G20 members to accelerate efforts to develop a regulatory apparatus for virtual currencies and Stablecoins.

In a letter sent to governors of central banks and finance ministers, Quarles emphasized the speed of innovation in digital payments and the emerging stablecoin sector, deciding to “accelerate the pace of developing the necessary regulatory and supervisory solutions for these new instruments.”

Technical Market Outlook:

After the Shooting Star candlestick pattern has been made at the level of $277.19, the Ethereum has reversed the direction and has filled the weekend gap located between the levels of $262.88 – $268.97. The local counter-trend corrective cycle might continue any time soon and the first target for bears is seen at the level of $238.68 – $235.62 zone. The weak and negative momentum supports the short-term bearish outlook. The fear of coronavirus is spreading across the financial markets and the cryptocurrency market is involved as well, together with stocks and risky currencies.

Weekly Pivot Points:

WR3 – $334.89

WR2 – $309.29

WR1 – $291.76

Weekly Pivot -$264.76

WS1 – $245.87

WS2 – $220.22

WS3 – $202.34

Trading recommendations:

The wave 2 corrective cycles are completed at the level of $115.05, so the market might be ready for another impulsive wave up of a higher degree and uptrend continuation. This strategy is valid as long as the level of $146.94 is not violated. The current move up might be a wave 3 in developing in the overall long-term Elliott wave scenario and so far the top at the level of $288.01 might be wave 1 of the overall wave 3.

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*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

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

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