FX.co ★ Technical Analysis of ETH/USD for March 18, 2021

Crypto Industry News:

According to the official, the member states of the Eurasian Economic Union, i.e.EEU, tried to work out a common position on cryptocurrency regulations.

Iya Malkina, deputy chairman of the Eurasian Economic Commission Council, said EEU member states did not support the recent initiative for a unified cryptocurrency regulatory framework within the EU.

In today's press briefing, Malkina explained that the Eurasian Economic Commission has received several proposals to synchronize regulations in the Blockchain and cryptocurrency industries. The ECE also recommended the development of a basic, single regulatory framework within the EEU with a single glossary and rules. "However, this proposal was not supported," the official said.

Malkina said that the ECE has been actively analyzing the impact of cryptocurrencies on the macroeconomic stability of EEU member states since December 2017.

The EEU is an economic union of countries located in Eastern Europe and Western and Central Asia, with member states such as Belarus, Russia, Kazakhstan, Armenia and others. The union was established in 2014 to facilitate the free movement of goods and services and to conduct common policies in the macroeconomic sphere.

Technical Market Outlook:

The ETH/USD pair has broken out of the narrow zone located between the levels of $1,720 - $1,816 to the upside and made a new local high at the level of $1,847. Despite that move, the consolidation zone is very close to the lower channel line that was recently violated and now bulls are not quite able to come back up inside the channel. Moreover, the breakout has ended with a Doji candlestick, so the bears are still defending the channel. If the price will go back to the consolidation zone, then the false breakout to the upside will be invalidated and there will be more chances for a bearish breakout to the downside.

Weekly Pivot Points:

WR3 - $2,266

WR2 - $2,113

WR1 - $1,975

Weekly Pivot - $1,820

WS1 - $1,716

WS2 - $1,552

WS3 - $1,423

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.