FX.co ★ Technical analysis of ETH/USD for 09/10/2019

Crypto Industry News:

The World Federation of Exchanges (WFE), a global trading association of publicly regulated exchanges, has asked the UK Financial Supervision Authority (FCA) not to limit cryptocurrency derivatives to retail investors.

WFE issued a statement today in response to a consultative document from the UK financial regulator regarding a potential ban on the use of cryptocurrency derivatives, such as futures contracts for Bitcoins and other cryptocurrency-related trading products. The WFE proposed that the FCA instead develop appropriate consumer protection.

WFE has included in its reply a number of recommendations, such as the potential implementation of standards for the above products, consideration of basic market structures and review of the ban - if it is introduced - in order to provide consumers with choice and access among others.

WFE Chief Executive Nandini Sukumar called on the authorities to create appropriate provisions enabling further market development, stating:

"Although cryptographic products have real potential, the market has suffered from unregulated suppliers distributing inappropriate products. Market infrastructures that meet stringent regulatory requirements include consumer protection under their mandate and understand that integrity is fundamental to well-functioning markets, they are best prepared to supply these products and support a growing market. "

WFE includes major exchanges from around the world, including the Nasdaq, CME Group, Korea Exchange, London Stock Exchange and Deutsche Boerse.

Technical Market Overview:

The recent low on ETH/USD was made at the level of $166.08, just above the local technical support located at the level of $163.98 - $162.50 and if the momentum will increase on the way up, then the next target for bulls is seen at the level of $187.37 and 195.88. Any violation of support located at the level of $166.08 will open the road towards the key technical support located at the level of $151.30. Currently, the market is hovering around the level of $180.00, but the bulls do not look ready for a breakout as the momentum is still decreasing, so the horizontal trend most likely will continue.

Weekly Pivot Points:

WR3 - $200.05

WR2 - $192.33

WR1 - $180.15

Weekly Pivot - $172.02

WS1 - $159.46

WS2 - $151.65

WS3 - $138.64

Trading recommendations:

The best strategy in the current market conditions is to trade with the larger timeframe trend, which is still up. All the shorter timeframe moves are still being treated as a counter-trend correction inside of the uptrend. When the wave 2 corrective cycles are completed, the market might will ready for another impulsive wave up of a higher degree and uptrend continuation.