FX.co ★ Technical Analysis of ETH/USD for October 23, 2020

Crypto Industry News:

Russian public officials will be required to declare all private crypto assets from early 2021. These requirements were announced by Russian Attorney General Igor Krasnov, after a meeting with 15 other Attorney General representing member states of the Shanghai Cooperation Organization (SCO).

"From next year, government officials will have to declare [virtual] currencies on a par with other assets," Krasnov said.

In 2018, Russia's labor ministry announced that public officials would not be required to declare their virtual assets in their tax reports due to the unregulated status of cryptocurrencies. As such, concerns remain that crypto assets may be the financial instrument of choice for bribery and corruption.

The Attorney General's Office says it has confiscated more than $ 440 million in undisclosed assets from public officials in the past three years.

These requirements are in line with a new law signed by President Vladimir Putin in July that will classify crypto assets as similar to physical goods from 2021 - recognizing virtual currencies in the country for the first time.

While the regulations do not recognize cryptocurrencies as legal tender, they will legitimize cryptocurrency activities throughout Russia.

In addition to the SOW member states: Russia, India, Kazakhstan, China, Kyrgyzstan, Pakistan, Uzbekistan and Tajikistan, the prosecutors general of Afghanistan, Belarus, Mongolia, Iran, Azerbaijan, Cambodia and Armenia - which are non-member and observer partners of the SCO, were also present at the meeting. The main topic of the meeting was the fight against corruption.

A Russian cryptocurrency reporting announcement suggests similar laws could soon be passed across the Eurasian region.

Technical Market Outlook:

The ETH/USD pair has made another higher high at the level of $420.18, just above the technical resistance located at $414.11. The next target for bulls is seen at the level of $430.71 and might be hit soon. On the other hand, the key technical support is seen at the level of $389.90. If this level is clearly violated, then the correction might extend towards the level of $383.32 and below. Please notice the bulls are making higher highs despite the overbought market conditions which might indicated the beginning of a new up trend.

Weekly Pivot Points:

WR3 - $424.52

WR2 - $408.88

WR1 - $391.97

Weekly Pivot - $376.47

WS1 - $357.63

WS2 - $341.22

WS3 - $328.22

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. Moreover, bulls had bounced from the weekly trend line support last week and now are away from it. The key mid-term technical support is currently seen at the level of $305.20 - $321.95, so 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.