FX.co ★ Technical Analysis of ETH/USD for March 12, 2021

Crypto Industry News:

The Russian central bank expects to start pilot programs for its central bank's digital currency in 2022, the board member said.

Bank of Russia vice president Alexei Zabotkin said the bank plans to complete the digital ruble prototype by the end of 2021, local news agency Prime said Wednesday. He announced his plans at an internet event hosted by the Moscow New School of Economics.

Zabotkin said the prototype would not support "real transactions" but rather serve as a starting point for building an ecosystem.

"Based on this prototype, we will start introducing practice rounds next year," said Zabotkin.

The Bank of Russia officially announced its CBDC plans in late 2020, issuing a consultation document on the development of the digital ruble in October last year. In January, the Russian Banks Association released an opinion on the project, warning that all the models proposed by the Bank of Russia could be associated with a range of cybersecurity and fraud risks.

At the end of February, the first vice-president of the Bank of Russia, Olga Skorobogatova, reportedly announced that the bank plans to develop a concept for the selected digital ruble model. She said the bank has not ruled out the possibility of charging fees for transfers between digital ruble wallets.

Technical Market Outlook:

The ETH/USD pair had been consolidating in a narrow range for some time now, so any violation of the level of $1,759 will open the road towards the lower levels like $1,748 and $1,700. Please notice, the 1:1 Fibonacci extension level located at $1,804 had been hit as well, but the response from bears is muted so far except the fact, that the new local low was made at the level of $1,728. The key short-term technical support is seen at the level of $1,633 and the next target for bulls is located at $1,902 (127% Fibonacci extension level).

Weekly Pivot Points:

WR3 - $2,090

WR2 - $1,882

WR1 - $1,810

Weekly Pivot - $1,598

WS1 - $1,500

WS2 - $1,295

WS3 - $1,210

Trading Recommendations:

The longer term up trend on the Ethereum continues despite the local counter-trend corrections. When the correction is terminated, the next long term target for ETH/USD is seen at the level of $2,100. The key long term technical support is seen at the level of $1,412, so only a weekly candle close below this level will invalidate the bullish scenario.