FX.co ★ Technical Analysis of ETH/USD for September 17, 2020

Crypto Industry News:

The Bahamas are aiming to become the first country in the world to introduce a nationwide state-supported virtual currency, while announcing that it will happen in October this year. The deputy head of eSolutions at the Central Bank of the Bahamas, Chaozhen Chen, told the media that the digital currency, dubbed "Sand Dollars", aims to increase the financial integration of remote islands in the archipelago.

Many of the inhabitants of these more remote islands do not have access to digital payment infrastructure or banking infrastructure. Really, we had to adapt efforts and solutions in this area, which we need as a sovereign nation.

Sand dollar transfers are made by mobile, and as of 2017, around 90% of the Bahamas population uses mobile phones.

Chen noted that the central bank's digital currency, or CBDC, would be subject to the same rules as the Bahamian dollar, with anti-money laundering protection and other "Know Your Customer" safeguards that apply to account creation to use virtual currency.

The Central Bank of the Bahamas first announced its intention to pilot a CBDC in June 2018, noting that many of the smaller islands experienced "a reduction in the size of commercial banks and their withdrawal from their communities, leaving them without banking services."

Technical Market Outlook:

The ETH/USD pair has bounced from the lower channel line around the level of $355.24. Currently, the market is slowly moving up and the local high was made at the level of $384.90. Due to the fact, that the last move inside the channel is corrective in nature, more weakness is expected in ETH/USD pair. The key technical support is seen at the level of $332.28 (outside of the channel). The key demand zone is seen between the levels of $305.20 - $321.95 and if violated, then the next key long term support is seen at the level of $288. On the other hand, the next target for bulls is seen at the level of $389.90 (swing high) and $407.03 (technical resistance).

Weekly Pivot Points:

WR3 - $460.14

WR2 - $422.13

WR1 - $395.03

Weekly Pivot - $357.60

WS1 - $326.67

WS2 - $291.16

WS3 - $261.17

Trading Recommendations:

The weekly and monthly time frame trend on the ETH/USD pair remains up and there are no signs of trend reversal, so buy orders are preferred in the mid-term. The key mid-term technical support, seen at the level of $364.95 had been violated, but all the dynamic corrections are still being used to buy the dips. The next mid-term target for bulls is seen at the level of $500.